Calculate your monthly lease payments with precision including taxes and fees.
24 Months
36 Months
48 Months
60 Months
Estimated Monthly Payment:
$0.00
Depreciation Fee:
Rent Charge (Interest):
Base Payment:
Sales Tax:
Residual Value:
Total Lease Cost:
How to Use the Car Lease Calculator
Leasing a vehicle is often more complex than traditional financing because the payment is based on the vehicle's depreciation rather than its full value. To get an accurate estimate, you need several key data points that dealerships often hide in the fine print.
Key Lease Terms Defined
Gross Capitalized Cost: The negotiated selling price of the car plus any added fees or taxes you choose to roll into the lease.
Residual Value: This is what the car is projected to be worth at the end of the lease. High residual values lead to lower monthly payments because you are "using up" less of the car's value.
Money Factor (Interest Rate): Dealerships use "Money Factor" instead of APR. To convert APR to Money Factor, divide the APR by 2400. This calculator does that conversion for you automatically.
Cap Cost Reduction: This is essentially your down payment, which reduces the total amount of the vehicle you need to finance.
Lease Calculation Example
Suppose you lease a luxury SUV with an MSRP of $50,000. If the residual value is 60% after 3 years, the car is expected to be worth $30,000. You are essentially paying for the $20,000 in depreciation over 36 months ($555/month), plus the interest (money factor) and taxes. A small change in the residual percentage or the interest rate can change your monthly bill by $50 or more.
Pro Tip: Always negotiate the "Sales Price" or "Capitalized Cost" just as you would if you were buying the car outright. A lower purchase price directly translates to a lower lease payment.
function calculateLease() {
var msrp = parseFloat(document.getElementById('msrp').value) || 0;
var downPayment = parseFloat(document.getElementById('downPayment').value) || 0;
var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0;
var term = parseInt(document.getElementById('leaseTerm').value) || 36;
var apr = parseFloat(document.getElementById('apr').value) || 0;
var residualPercent = parseFloat(document.getElementById('residualPercent').value) || 0;
var salesTax = parseFloat(document.getElementById('salesTax').value) || 0;
var fees = parseFloat(document.getElementById('fees').value) || 0;
// 1. Adjusted Capitalized Cost
var capReduction = downPayment + tradeIn;
var adjCapCost = (msrp + fees) – capReduction;
// 2. Residual Value
var residualValue = msrp * (residualPercent / 100);
// 3. Depreciation Fee
var depreciationFee = (adjCapCost – residualValue) / term;
if (depreciationFee < 0) depreciationFee = 0;
// 4. Rent Charge (Interest)
// Money Factor = APR / 2400
var moneyFactor = apr / 2400;
var rentCharge = (adjCapCost + residualValue) * moneyFactor;
// 5. Base Payment
var basePayment = depreciationFee + rentCharge;
// 6. Tax
var monthlyTax = basePayment * (salesTax / 100);
// 7. Total Monthly Payment
var totalMonthly = basePayment + monthlyTax;
// 8. Total Lease Cost
var totalCostOfLease = (totalMonthly * term) + capReduction;
// Format results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
if (isNaN(totalMonthly) || totalMonthly < 0 || !isFinite(totalMonthly)) {
alert("Please enter valid numerical values.");
return;
}
document.getElementById('monthlyPaymentDisplay').innerText = formatter.format(totalMonthly);
document.getElementById('depreciationPart').innerText = formatter.format(depreciationFee);
document.getElementById('rentPart').innerText = formatter.format(rentCharge);
document.getElementById('basePart').innerText = formatter.format(basePayment);
document.getElementById('taxPart').innerText = formatter.format(monthlyTax);
document.getElementById('residualDisplay').innerText = formatter.format(residualValue);
document.getElementById('totalCost').innerText = formatter.format(totalCostOfLease);
document.getElementById('resultArea').style.display = 'block';
// Smooth scroll to result
document.getElementById('resultArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}