Car Payment Calculator with Down Payment

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Car Lease Monthly Payment Calculator

24 Months 36 Months 48 Months 60 Months

Estimated Monthly Payment

$0.00
Total Depreciation:
Total Finance Fee:
Residual Value:
Total Lease Cost:
function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').value) || 0; var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0; var term = parseFloat(document.getElementById('term').value) || 36; var apr = parseFloat(document.getElementById('apr').value) || 0; var residualPercent = parseFloat(document.getElementById('residualPercent').value) || 0; var capitalizedCost = msrp – downPayment – tradeIn; var residualValue = msrp * (residualPercent / 100); if (capitalizedCost < residualValue) { alert("The capitalized cost cannot be lower than the residual value. Please check your down payment or MSRP."); return; } var moneyFactor = apr / 2400; var depreciationFee = (capitalizedCost – residualValue) / term; var financeFee = (capitalizedCost + residualValue) * moneyFactor; var monthlyPayment = depreciationFee + financeFee; var totalCost = monthlyPayment * term; document.getElementById('monthly-payment').innerText = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('total-depreciation').innerText = '$' + (capitalizedCost – residualValue).toLocaleString(); document.getElementById('total-finance').innerText = '$' + (financeFee * term).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('residual-amount').innerText = '$' + residualValue.toLocaleString(); document.getElementById('total-cost').innerText = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('result-box').style.display = 'block'; }

Understanding How Your Car Lease Payment is Calculated

A car lease can often feel more complex than a standard car loan. Unlike a loan where you pay for the entire value of the vehicle plus interest, a lease essentially charges you for the depreciation of the car during the time you drive it, plus a rental fee (the money factor).

The Three Main Components of a Lease

  • Depreciation Fee: This is the largest part of your payment. It represents the loss in the vehicle's value. We calculate it by taking the Gross Capitalized Cost (the price of the car) minus the Residual Value (what the car is worth at the end) and dividing that by the number of months in the lease.
  • Finance Fee (Money Factor): This is the interest you pay for the leasing company's capital. A unique aspect of leasing is that the interest is calculated on the sum of the capitalized cost and the residual value.
  • Taxes and Fees: Depending on your state, sales tax may be applied to the monthly payment, the total lease cost upfront, or the capitalized cost. Our calculator focuses on the base monthly payment before local taxes.

Lease Calculation Example

Imagine you are leasing a car with an MSRP of $40,000. The dealer gives you a price of $38,000. You put $2,000 down, leaving a Net Cap Cost of $36,000. If the residual value is 60% after 36 months, the car will be worth $24,000. If the APR is 4.8% (Money Factor of 0.002), your math looks like this:

  1. Monthly Depreciation: ($36,000 – $24,000) / 36 = $333.33
  2. Monthly Finance Fee: ($36,000 + $24,000) * 0.002 = $120.00
  3. Total Base Payment: $333.33 + $120.00 = $453.33

Tips for Lowering Your Monthly Lease

To get the best possible deal, focus on negotiating the Gross Capitalized Cost (the selling price) just as you would if you were buying the car. Additionally, look for cars with high Residual Values; cars that hold their value better will actually cost you less to lease because the depreciation gap is smaller. Finally, ensure your credit score is high to qualify for the lowest possible Money Factor.

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