.lease-calc-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e1e1e1;
border-radius: 12px;
background-color: #ffffff;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
color: #333;
}
.lease-calc-header {
text-align: center;
margin-bottom: 30px;
}
.lease-calc-header h2 {
color: #1a73e8;
margin-bottom: 10px;
}
.lease-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
.lease-calc-field {
margin-bottom: 15px;
}
.lease-calc-field label {
display: block;
font-weight: 600;
margin-bottom: 8px;
font-size: 14px;
}
.lease-calc-field input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
box-sizing: border-box;
font-size: 16px;
}
.lease-calc-button {
grid-column: span 2;
background-color: #1a73e8;
color: white;
padding: 15px;
border: none;
border-radius: 6px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
}
.lease-calc-button:hover {
background-color: #1557b0;
}
.lease-calc-result {
margin-top: 30px;
padding: 20px;
background-color: #f8f9fa;
border-radius: 8px;
border-left: 5px solid #1a73e8;
display: none;
}
.result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 5px;
border-bottom: 1px dashed #ddd;
}
.result-total {
font-size: 24px;
font-weight: bold;
color: #1a73e8;
margin-top: 15px;
text-align: center;
}
.lease-article {
margin-top: 40px;
line-height: 1.6;
color: #444;
}
.lease-article h3 {
color: #222;
margin-top: 25px;
}
@media (max-width: 600px) {
.lease-calc-grid {
grid-template-columns: 1fr;
}
.lease-calc-button {
grid-column: span 1;
}
}
Vehicle MSRP ($)
Negotiated Sales Price ($)
Down Payment ($)
Trade-in Allowance ($)
Lease Term (Months)
Residual Value (%)
Money Factor (e.g. 0.00125)
Sales Tax (%)
Calculate Monthly Payment
Gross Capitalized Cost:
Residual Value:
Monthly Depreciation:
Monthly Finance Fee:
Monthly Tax:
Total Monthly Payment:
How Car Lease Payments are Calculated
Unlike a standard auto loan, a car lease is based on the difference between the vehicle's current value and its projected value at the end of the term. This difference is known as depreciation.
Key Terms to Know
MSRP: The Manufacturer's Suggested Retail Price. This is used to calculate the residual value.Gross Capitalized Cost: The negotiated price of the vehicle plus any added fees or service contracts.Capitalized Cost Reduction: The sum of your down payment, trade-in credit, and any manufacturer rebates. This reduces the amount you need to finance.Residual Value: The estimated value of the car at the end of the lease. This is set by the leasing company.Money Factor: The interest rate on the lease. To convert this to a standard APR, multiply it by 2,400.
Example Calculation
Imagine you are leasing a car with an MSRP of $40,000 and a negotiated sales price of $38,000. If the residual value is 60%, the car is expected to be worth $24,000 after 3 years. You are essentially paying for the $14,000 difference ($38,000 – $24,000) over 36 months, plus the money factor (interest).
The Formula
The math behind your monthly payment consists of three parts:
Depreciation Fee: (Adjusted Cap Cost – Residual Value) / TermFinance Fee (Rent Charge): (Adjusted Cap Cost + Residual Value) × Money FactorSales Tax: (Depreciation Fee + Finance Fee) × Tax Rate
function calculateLease() {
var msrp = parseFloat(document.getElementById("msrp").value);
var salesPrice = parseFloat(document.getElementById("salesPrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value) || 0;
var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0;
var term = parseFloat(document.getElementById("leaseTerm").value);
var resPercent = parseFloat(document.getElementById("residualPercent").value);
var mf = parseFloat(document.getElementById("moneyFactor").value);
var taxRate = parseFloat(document.getElementById("taxRate").value) || 0;
if (!msrp || !salesPrice || !term || !resPercent || !mf) {
alert("Please fill in all required fields with valid numbers.");
return;
}
// 1. Calculate Residual Value
var residualValue = msrp * (resPercent / 100);
// 2. Calculate Adjusted Capitalized Cost
var adjCapCost = salesPrice – downPayment – tradeIn;
if (adjCapCost <= residualValue) {
alert("The adjusted capitalized cost must be greater than the residual value. Decrease your down payment or renegotiate the sales price.");
return;
}
// 3. Monthly Depreciation
var monthlyDepreciation = (adjCapCost – residualValue) / term;
// 4. Monthly Rent Charge (Finance Fee)
var monthlyFinance = (adjCapCost + residualValue) * mf;
// 5. Pre-tax payment
var preTaxPayment = monthlyDepreciation + monthlyFinance;
// 6. Tax
var monthlyTax = preTaxPayment * (taxRate / 100);
// 7. Total Payment
var totalPayment = preTaxPayment + monthlyTax;
// Display Results
document.getElementById("resGrossCap").innerText = "$" + adjCapCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resResidual").innerText = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resDepreciation").innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resFinance").innerText = "$" + monthlyFinance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTax").innerText = "$" + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTotal").innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("leaseResult").style.display = "block";
}