Estimate your monthly car lease payments with tax, money factor, and residual values.
Estimated Monthly Payment
$0.00
Gross Capitalized Cost:$0.00
Residual Value:$0.00
Monthly Depreciation:$0.00
Monthly Rent Charge:$0.00
Monthly Sales Tax:$0.00
How to Calculate Your Car Lease Payment
Leasing a vehicle can be more complex than a traditional auto loan because you aren't paying for the entire value of the car. Instead, you are paying for the depreciation that occurs during the time you drive it, plus interest and taxes. Using a lease calculator helps you verify dealership quotes and ensures you're getting a fair deal.
Understanding the Key Lease Terms
To use this calculator effectively, you need to understand the four primary components that dictate your monthly payment:
Gross Capitalized Cost: This is the negotiated price of the car plus any added fees or taxes you choose to roll into the lease.
Residual Value: This is the predicted value of the car at the end of the lease term. It is usually set by the manufacturer and expressed as a percentage of the MSRP.
Money Factor: This represents the interest rate on the lease. To convert a money factor to a standard APR, multiply it by 2400. For example, a money factor of 0.00125 is equal to a 3% APR.
Lease Term: The duration of the agreement, typically 24, 36, or 48 months.
The Lease Calculation Formula
Our calculator uses the industry-standard formula to determine your payment:
Monthly Depreciation = (Adjusted Cap Cost – Residual Value) / Term
Base Payment = Monthly Depreciation + Monthly Rent Charge
Total Payment = Base Payment × (1 + Sales Tax Rate)
Example Lease Scenario
Suppose you are leasing a SUV with an MSRP of $45,000. The dealer offers a 36-month lease with a 60% residual value and a money factor of 0.00125. You put $3,000 down and have $1,000 in fees.
To reduce your monthly costs, focus on negotiating the Gross Capitalized Cost. While you cannot usually negotiate the residual value, reducing the vehicle price directly lowers the depreciation component of your payment. Additionally, check if you qualify for manufacturer incentives or "loyalty" rebates which can act as additional down payments.
function calculateAutoLease() {
// Get Input Values
var carPrice = parseFloat(document.getElementById('carPrice').value);
var residualRate = parseFloat(document.getElementById('residualRate').value) / 100;
var downPayment = parseFloat(document.getElementById('downPayment').value) || 0;
var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0;
var leaseTerm = parseFloat(document.getElementById('leaseTerm').value);
var moneyFactor = parseFloat(document.getElementById('moneyFactor').value);
var salesTax = parseFloat(document.getElementById('salesTax').value) / 100;
var fees = parseFloat(document.getElementById('fees').value) || 0;
// Validate Inputs
if (isNaN(carPrice) || isNaN(leaseTerm) || isNaN(moneyFactor) || leaseTerm <= 0) {
alert("Please enter valid numbers for Car Price, Lease Term, and Money Factor.");
return;
}
// 1. Calculate Residual Value
var residualValue = carPrice * residualRate;
// 2. Calculate Adjusted Capitalized Cost
var adjCapCost = carPrice + fees – downPayment – tradeIn;
if (adjCapCost < residualValue) {
alert("Warning: The Adjusted Capitalized Cost is lower than the Residual Value. Please check your inputs.");
}
// 3. Calculate Monthly Depreciation
var depreciationTotal = adjCapCost – residualValue;
var monthlyDepreciation = depreciationTotal / leaseTerm;
// 4. Calculate Monthly Rent Charge (Interest)
// Formula: (Adj Cap Cost + Residual Value) * Money Factor
var monthlyRentCharge = (adjCapCost + residualValue) * moneyFactor;
// 5. Calculate Base Payment
var basePayment = monthlyDepreciation + monthlyRentCharge;
// 6. Calculate Sales Tax
var monthlyTax = basePayment * salesTax;
// 7. Total Monthly Payment
var totalMonthlyPayment = basePayment + monthlyTax;
// Display Results
document.getElementById('leaseResultBox').style.display = 'block';
document.getElementById('monthlyPaymentDisplay').innerText = '$' + totalMonthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('grossCapCost').innerText = '$' + adjCapCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('residualValueDisplay').innerText = '$' + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('monthlyDepreciation').innerText = '$' + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('monthlyRentCharge').innerText = '$' + monthlyRentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('monthlyTax').innerText = '$' + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Scroll to results on mobile
document.getElementById('leaseResultBox').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}