Refinance Rates California Calculator

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Advanced Car Lease Calculator

Calculate your exact monthly lease payment including taxes and fees.

Original sticker price of the vehicle.
Gross capitalized cost after discounts.
24 Months 36 Months 39 Months 48 Months
Estimated percentage of MSRP at end of lease.
Interest rate / 2400 (e.g., 3% = 0.00125).
Estimated Monthly Payment $0.00
Net Cap Cost: $0.00
Residual Amount: $0.00
Monthly Depreciation: $0.00
Monthly Rent Charge: $0.00
Monthly Base: $0.00
Monthly Tax: $0.00

Understanding Your Car Lease Calculation

Leasing a vehicle is often more complex than buying because it involves several variables that traditional loans do not. To get the most accurate estimate, it is important to understand the "hidden" math behind the contract.

The Key Components of a Lease

  • Gross Capitalized Cost: This is the price you negotiate with the dealer. Always negotiate the price just as you would for a purchase before mentioning you want to lease.
  • Residual Value: This is what the car is projected to be worth at the end of the lease. A higher residual value results in a lower monthly payment because you are financing less depreciation.
  • Money Factor: This is the lease version of an interest rate. To convert a money factor to a standard APR, multiply it by 2400. For example, a money factor of 0.00125 is equivalent to a 3% interest rate.
  • Cap Cost Reductions: Down payments, trade-ins, and rebates that reduce the amount you need to finance.

Practical Example

Imagine you are leasing a vehicle with an MSRP of $40,000. You negotiate the price down to $38,000 and put $2,000 down. The bank sets a 60% residual for a 36-month term with a 0.0015 money factor (3.6% APR).

  1. Net Cap Cost: $38,000 – $2,000 = $36,000.
  2. Residual Value: $40,000 x 0.60 = $24,000.
  3. Depreciation Fee: ($36,000 – $24,000) / 36 months = $333.33/mo.
  4. Rent Charge: ($36,000 + $24,000) x 0.0015 = $90.00/mo.
  5. Total Base Payment: $333.33 + $90.00 = $423.33/mo (plus local tax).
function calculateCarLease() { // Get values from inputs var msrp = parseFloat(document.getElementById('lease_msrp').value); var negPrice = parseFloat(document.getElementById('lease_negPrice').value); var downPayment = parseFloat(document.getElementById('lease_downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('lease_tradeIn').value) || 0; var term = parseFloat(document.getElementById('lease_term').value); var residualPerc = parseFloat(document.getElementById('lease_residual').value); var moneyFactor = parseFloat(document.getElementById('lease_moneyFactor').value); var taxRate = parseFloat(document.getElementById('lease_tax').value) || 0; // Validate inputs if (isNaN(msrp) || isNaN(negPrice) || isNaN(term) || isNaN(residualPerc) || isNaN(moneyFactor)) { alert("Please fill in all required fields with valid numbers."); return; } // Step 1: Calculate Adjusted Capitalized Cost var netCapCost = negPrice – downPayment – tradeIn; // Step 2: Calculate Residual Dollar Amount var residualValue = msrp * (residualPerc / 100); // Step 3: Calculate Monthly Depreciation var monthlyDepreciation = (netCapCost – residualValue) / term; // Handle edge case where residual is higher than cap cost (rare but possible in some incentives) if (monthlyDepreciation < 0) monthlyDepreciation = 0; // Step 4: Calculate Monthly Rent Charge (Finance Fee) // Formula: (Net Cap Cost + Residual Value) * Money Factor var monthlyRentCharge = (netCapCost + residualValue) * moneyFactor; // Step 5: Base Monthly Payment var baseMonthlyPayment = monthlyDepreciation + monthlyRentCharge; // Step 6: Total Payment with Tax var monthlyTax = baseMonthlyPayment * (taxRate / 100); var totalMonthlyPayment = baseMonthlyPayment + monthlyTax; // Display Results document.getElementById('lease_result_area').style.display = 'block'; document.getElementById('lease_total_payment').innerHTML = "$" + totalMonthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('lease_net_cap').innerHTML = "$" + netCapCost.toLocaleString(); document.getElementById('lease_res_val').innerHTML = "$" + residualValue.toLocaleString(); document.getElementById('lease_monthly_dep').innerHTML = "$" + monthlyDepreciation.toFixed(2); document.getElementById('lease_monthly_rent').innerHTML = "$" + monthlyRentCharge.toFixed(2); document.getElementById('lease_monthly_base').innerHTML = "$" + baseMonthlyPayment.toFixed(2); document.getElementById('lease_monthly_tax').innerHTML = "$" + monthlyTax.toFixed(2); // Smooth scroll to result document.getElementById('lease_result_area').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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