:root {
–primary-blue: #004a99;
–success-green: #28a745;
–light-background: #f8f9fa;
–text-color: #333;
–border-color: #ddd;
}
body {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
background-color: #fff;
color: var(–text-color);
line-height: 1.6;
margin: 0;
padding: 20px;
}
.loan-calc-container {
max-width: 800px;
margin: 30px auto;
background-color: #fff;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1);
padding: 30px;
border: 1px solid var(–border-color);
}
h1, h2 {
color: var(–primary-blue);
text-align: center;
margin-bottom: 20px;
}
.input-group {
margin-bottom: 18px;
display: flex;
flex-direction: column;
}
.input-group label {
font-weight: bold;
margin-bottom: 8px;
color: var(–primary-blue);
}
.input-group input[type="number"],
.input-group input[type="text"],
.input-group select {
padding: 12px;
border: 1px solid var(–border-color);
border-radius: 5px;
font-size: 1rem;
width: 100%;
box-sizing: border-box; /* Include padding and border in the element's total width and height */
}
.input-group input[type="number"]:focus,
.input-group input[type="text"]:focus,
.input-group select:focus {
outline: none;
border-color: var(–primary-blue);
box-shadow: 0 0 0 3px rgba(0, 74, 153, 0.2);
}
button {
background-color: var(–primary-blue);
color: white;
padding: 12px 20px;
border: none;
border-radius: 5px;
font-size: 1.1rem;
cursor: pointer;
transition: background-color 0.3s ease;
width: 100%;
margin-top: 10px;
}
button:hover {
background-color: #003366;
}
#result {
margin-top: 30px;
padding: 20px;
background-color: var(–success-green);
color: white;
border-radius: 5px;
text-align: center;
font-size: 1.5rem;
font-weight: bold;
box-shadow: 0 2px 10px rgba(40, 167, 69, 0.4);
}
#result span {
font-size: 1.2rem;
font-weight: normal;
display: block;
margin-top: 5px;
}
.article-content {
margin-top: 40px;
padding: 30px;
background-color: var(–light-background);
border-radius: 8px;
border: 1px solid var(–border-color);
}
.article-content h2 {
text-align: left;
margin-bottom: 15px;
color: var(–primary-blue);
}
.article-content p,
.article-content ul {
margin-bottom: 15px;
}
.article-content strong {
color: var(–primary-blue);
}
/* Responsive adjustments */
@media (max-width: 600px) {
.loan-calc-container {
padding: 20px;
}
h1 {
font-size: 1.8rem;
}
h2 {
font-size: 1.4rem;
}
button {
font-size: 1rem;
padding: 10px 15px;
}
#result {
font-size: 1.3rem;
}
}
Understanding Your Car Lease Payment
Leasing a car can be an attractive option for many drivers, offering lower monthly payments compared to financing and the flexibility to drive a new car every few years. However, understanding how your monthly payment is calculated is crucial to ensure you're getting a fair deal. This calculator breaks down the key components that determine your car lease payment.
The Key Components of a Lease Payment
A typical car lease payment consists of several factors:
- Depreciation: This is the primary cost of leasing. It's the difference between the vehicle's starting price (MSRP) and its predicted value at the end of the lease term (residual value). You're essentially paying for the portion of the car's value you'll use during the lease.
- Financing Charge (Rent Charge): This is similar to interest on a loan. It's calculated on the average amount of depreciation over the lease term. The annual interest rate you see advertised is converted to a daily rate for the calculation.
- Sales Tax: Most states charge sales tax on the monthly lease payment. Some states charge it upfront on the entire lease deal, which can significantly increase the due at signing amount.
- Fees: This can include acquisition fees, disposition fees (at lease end), documentation fees, registration fees, and other administrative charges. These are often rolled into the monthly payment or paid upfront.
How the Car Lease Payment is Calculated
The formula used in this calculator is a standard approximation for lease payments. It calculates the monthly depreciation cost and the monthly financing cost separately and then sums them up.
1. Calculate Depreciation Amount:
Depreciation Amount = Vehicle Price – (Vehicle Price * Residual Value Percentage)
Example: For a $35,000 car with a 55% residual value, the depreciation is $35,000 – ($35,000 * 0.55) = $35,000 – $19,250 = $15,750.
2. Calculate Monthly Depreciation:
Monthly Depreciation = Depreciation Amount / Lease Term (in months)
Example: For a 36-month lease, monthly depreciation is $15,750 / 36 = $437.50.
3. Calculate Average Money Factor:
The Money Factor is a way to express the financing charge. It's typically a very small decimal number. To get an approximate Money Factor from an Annual Interest Rate, divide the Annual Interest Rate by 2400.
Money Factor ≈ Annual Interest Rate (%) / 2400
Example: For a 4.5% annual interest rate, the Money Factor is approximately 4.5 / 2400 = 0.001875.
4. Calculate Monthly Finance Charge:
The finance charge is calculated on the sum of the vehicle price and the residual value, multiplied by the money factor, then divided by the lease term. This approximates the average balance over the lease.
Monthly Finance Charge = ((Vehicle Price + Residual Value) / 2) * Money Factor
Example: For a $35,000 car with a $19,250 residual value and a money factor of 0.001875, the monthly finance charge is (($35,000 + $19,250) / 2) * 0.001875 = ($54,250 / 2) * 0.001875 = $27,125 * 0.001875 = $50.86.
Note: Some calculators may use a slightly different method, for instance, calculating finance charge on the initial balance of depreciation, which can result in slightly different figures.
5. Calculate Total Monthly Payment (before taxes/fees):
Total Monthly Payment = Monthly Depreciation + Monthly Finance Charge
Example: $437.50 + $50.86 = $488.36.
Important Considerations:
- Sales Tax: Remember to add applicable sales tax to your monthly payment.
- Fees: Acquisition fees, disposition fees, and other charges can impact the total cost.
- Mileage Limits: Leases come with mileage restrictions. Exceeding them results in per-mile charges at lease end.
- Wear and Tear: Excessive wear and tear can also lead to additional charges.
This calculator provides an excellent estimate for your monthly car lease payment. Always review the official lease contract carefully for exact figures and terms.
function calculateLease() {
var vehiclePrice = parseFloat(document.getElementById("vehiclePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var residualValuePercent = parseFloat(document.getElementById("residualValue").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var leaseTerm = parseFloat(document.getElementById("leaseTerm").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
// — Input Validation —
if (isNaN(vehiclePrice) || vehiclePrice <= 0) {
resultDiv.innerHTML = "Please enter a valid Vehicle Price.";
return;
}
if (isNaN(downPayment) || downPayment < 0) {
resultDiv.innerHTML = "Please enter a valid Down Payment (or 0).";
return;
}
if (isNaN(residualValuePercent) || residualValuePercent 100) {
resultDiv.innerHTML = "Please enter Residual Value as a percentage between 1 and 100.";
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
resultDiv.innerHTML = "Please enter a valid Annual Interest Rate (or 0).";
return;
}
if (isNaN(leaseTerm) || leaseTerm <= 0) {
resultDiv.innerHTML = "Please enter a valid Lease Term in months.";
return;
}
// — Calculations —
// 1. Calculate Residual Value Amount
var residualValueAmount = vehiclePrice * (residualValuePercent / 100);
// 2. Calculate Total Depreciation
var totalDepreciation = vehiclePrice – residualValueAmount – downPayment;
if (totalDepreciation < 0) {
totalDepreciation = 0; // Cannot have negative depreciation for calculation
}
// 3. Calculate Monthly Depreciation
var monthlyDepreciation = totalDepreciation / leaseTerm;
// 4. Calculate Money Factor
var moneyFactor = annualInterestRate / 2400;
// 5. Calculate Finance Charge (Rent Charge)
// This formula approximates the finance charge based on the average balance
var averageBalance = (vehiclePrice + residualValueAmount) / 2;
var monthlyFinanceCharge = averageBalance * moneyFactor;
// 6. Total Monthly Payment (before taxes and fees)
var totalMonthlyPayment = monthlyDepreciation + monthlyFinanceCharge;
// — Display Result —
// Format as currency
var formattedMonthlyPayment = totalMonthlyPayment.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
var formattedDownPayment = downPayment.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
var formattedResidualValueAmount = residualValueAmount.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
var formattedTotalDepreciation = totalDepreciation.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
resultDiv.innerHTML = `
Monthly Lease Payment:
Details:
Down Payment Applied: ${formattedDownPayment}
Estimated Residual Value: ${formattedResidualValueAmount}
Total Depreciation Cost: ${formattedTotalDepreciation}