Estimate your monthly lease payment for a Rivian vehicle.
Understanding Your Rivian Lease Payment
Leasing a Rivian offers a way to drive the innovative electric adventure vehicle with potentially lower upfront costs and monthly payments compared to purchasing. However, understanding the components of your lease payment is crucial to negotiating a fair deal and knowing what you're paying for. This calculator helps demystify the process by estimating your monthly lease cost based on key variables.
How the Rivian Lease Calculator Works
The monthly lease payment is primarily determined by the vehicle's depreciation over the lease term, the money factor (which is akin to an interest rate), and any upfront reductions to the capitalized cost. Here's a breakdown of the calculation:
Depreciation Cost: This is the difference between the vehicle's price and its estimated residual value at the end of the lease, spread over the lease term.
Formula: (Vehicle MSRP – Residual Value) / Lease Term (in months)
Finance Charge (Rent Charge): This represents the cost of borrowing money to finance the lease. It's calculated using the money factor and the sum of the vehicle's price and its residual value, adjusted for any capitalized cost reduction.
Formula: (Vehicle MSRP + Residual Value – Capitalized Cost Reduction) * Money Factor * 360 (days in a year adjustment)
Note: This simplified formula often multiplies the money factor by 2400 to get an approximate APR, or uses 360 days. We use the direct money factor approach as seen in the JavaScript.
Capitalized Cost Reduction (Cap Cost Reduction): This is any amount paid upfront that lowers the vehicle's price for lease calculation purposes (e.g., down payment, rebates, trade-in equity).
Residual Value: This is the predicted value of the vehicle at the end of the lease term, typically expressed as a percentage of the original MSRP. Manufacturers set these values. Higher residual values generally lead to lower monthly payments.
Money Factor: This is a small decimal number representing the financing charge. To convert it to an approximate Annual Percentage Rate (APR), multiply it by 2400. For example, a money factor of 0.00150 is roughly equivalent to a 3.6% APR (0.00150 * 2400 = 3.6%).
Key Input Definitions:
Vehicle MSRP ($): The Manufacturer's Suggested Retail Price of the Rivian model you are interested in.
Lease Term (Months): The duration of the lease agreement, typically ranging from 24 to 48 months.
Annual Mileage Limit: The maximum number of miles you agree to drive per year. Exceeding this limit usually incurs per-mile charges at lease end. Common limits are 10,000, 12,000, or 15,000 miles per year.
Residual Value Percentage (%): The percentage of the MSRP that the vehicle is expected to be worth at the end of the lease term. This is determined by the leasing company and the vehicle model.
Money Factor: The financing rate used by the leasing company. Often expressed as a five-digit decimal (e.g., 0.00150). Enter the number without the leading zeros (e.g., enter 150 for 0.00150).
Capitalized Cost Reduction ($): Any amount paid upfront that reduces the "capitalized cost" (the negotiated price for the lease). This can include a down payment, rebates, or trade-in value.
Example Scenario:
Let's estimate the lease payment for a Rivian R1T:
Vehicle MSRP: $73,000
Lease Term: 36 months
Annual Mileage Limit: 10,000 miles
Residual Value Percentage: 55%
Money Factor: 0.00150 (enter as 150)
Capitalized Cost Reduction: $5,000
Using these figures, the calculator will determine the estimated monthly lease payment. Remember that this is an estimate; actual lease deals may include additional fees (acquisition fee, disposition fee, taxes) and negotiation can impact the final capitalized cost.
function calculateLeasePayment() {
var vehiclePrice = parseFloat(document.getElementById("vehiclePrice").value);
var leaseTermMonths = parseInt(document.getElementById("leaseTermMonths").value);
var annualMileage = parseInt(document.getElementById("annualMileage").value);
var residualValuePercentage = parseFloat(document.getElementById("residualValuePercentage").value);
var moneyFactorInput = parseFloat(document.getElementById("moneyFactor").value);
var capitalizedCostReduction = parseFloat(document.getElementById("capitalizedCostReduction").value);
var resultDiv = document.getElementById("result");
resultDiv.textContent = ""; // Clear previous result
// Input validation
if (isNaN(vehiclePrice) || vehiclePrice <= 0 ||
isNaN(leaseTermMonths) || leaseTermMonths <= 0 ||
isNaN(annualMileage) || annualMileage <= 0 ||
isNaN(residualValuePercentage) || residualValuePercentage 100 ||
isNaN(moneyFactorInput) || moneyFactorInput < 0 || // Money factor can be 0, but not negative
isNaN(capitalizedCostReduction) || capitalizedCostReduction < 0) {
resultDiv.textContent = "Please enter valid numbers for all fields.";
resultDiv.style.backgroundColor = "#f8d7da"; // Error color
resultDiv.style.color = "#721c24";
return;
}
// Convert money factor input (e.g., 150 for 0.00150)
var moneyFactor = moneyFactorInput / 240000; // Adjusted conversion for direct use
// Calculate Residual Value
var residualValue = vehiclePrice * (residualValuePercentage / 100);
// Calculate Total Depreciation
var totalDepreciation = vehiclePrice – residualValue;
// Calculate Monthly Depreciation Payment
var monthlyDepreciation = totalDepreciation / leaseTermMonths;
// Calculate Adjusted Capitalized Cost (negotiated price for lease)
var adjustedCapitalizedCost = vehiclePrice – capitalizedCostReduction;
// Ensure adjusted cap cost doesn't go below residual value for calculation purposes
if (adjustedCapitalizedCost < residualValue) {
adjustedCapitalizedCost = residualValue;
}
// Calculate Monthly Finance Charge (Rent Charge)
// Formula: (Adjusted Cap Cost + Residual Value) * Money Factor
var monthlyFinanceCharge = (adjustedCapitalizedCost + residualValue) * moneyFactor;
// Calculate Total Estimated Monthly Payment
var estimatedMonthlyPayment = monthlyDepreciation + monthlyFinanceCharge;
// Format the result
var formattedMonthlyPayment = estimatedMonthlyPayment.toLocaleString('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
resultDiv.textContent = "Estimated Monthly Payment: " + formattedMonthlyPayment;
resultDiv.style.backgroundColor = "var(–success-green)"; // Success color
resultDiv.style.color = "white";
}