Car Lease Payment Calculator
Calculate your monthly lease payment including taxes and fees.
Lease Summary
Estimated Monthly Payment
$0.00
Gross Cap Cost:
$0.00
Residual Value:
$0.00
Depreciation Fee:
$0.00/mo
Rent Charge:
$0.00/mo
Base Payment:
$0.00/mo
Monthly Tax:
$0.00/mo
Pro Tip: Always negotiate the "Sales Price" before mentioning you are leasing. Lowering the sales price by $1,000 reduces your monthly payment more than a $1,000 down payment because it also reduces the finance charges!
Understanding Your Car Lease Calculation
Leasing a vehicle is often more complex than a standard car loan. Instead of paying for the entire value of the car, you are essentially paying for the depreciation that occurs during the time you drive it, plus a financing fee (rent charge).
The Three Pillars of Lease Math
- Depreciation Fee: This is the difference between the Adjusted Capitalized Cost (the price you pay) and the Residual Value (what the car is worth at the end), spread over the lease term.
- Rent Charge (Money Factor): This is the interest you pay on the lease. Unlike a traditional APR, the Money Factor is a small decimal. To convert APR to Money Factor, divide by 2400.
- Sales Tax: In most states, you only pay sales tax on the monthly lease payment, not the full value of the vehicle.
Example Calculation
If you lease a car with an MSRP of $40,000 for a sales price of $38,000 with a $2,000 down payment, a 60% residual ($24,000), and a 0.00125 money factor for 36 months:
- Adjusted Cap Cost: $38,000 – $2,000 = $36,000
- Monthly Depreciation: ($36,000 – $24,000) ÷ 36 = $333.33
- Monthly Rent Charge: ($36,000 + $24,000) × 0.00125 = $75.00
- Base Payment: $333.33 + $75.00 = $408.33
Frequently Asked Questions
What is a good Money Factor?
A "good" money factor depends on the current national interest rates. Generally, anything under 0.0015 (3.6% APR) is considered excellent for a lease.
Can I negotiate the Residual Value?
No. Residual values are set by the bank or the manufacturer's captive finance arm (e.g., Ford Credit or Honda Financial Services) and are non-negotiable.
Should I put money down on a lease?
Most experts recommend putting $0 down (Sign-and-Drive). If the car is totaled or stolen shortly after you leave the lot, your down payment is usually lost, as insurance pays the leasing company, not you.
function calculateLeasePayment() {
// Get Input Values
var msrp = parseFloat(document.getElementById("msrp").value) || 0;
var salesPrice = parseFloat(document.getElementById("salesPrice").value) || 0;
var downPayment = parseFloat(document.getElementById("downPayment").value) || 0;
var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0;
var leaseTerm = parseFloat(document.getElementById("leaseTerm").value) || 1;
var residualPercent = parseFloat(document.getElementById("residualValue").value) || 0;
var moneyFactor = parseFloat(document.getElementById("moneyFactor").value) || 0;
var taxRate = parseFloat(document.getElementById("salesTax").value) || 0;
// Step 1: Calculate Adjusted Capitalized Cost
var capCost = salesPrice – (downPayment + tradeIn);
if (capCost < 0) capCost = 0;
// Step 2: Calculate Residual Value in Dollars
var residualValueAmount = msrp * (residualPercent / 100);
// Step 3: Monthly Depreciation
// (Cap Cost – Residual) / Term
var monthlyDepreciation = (capCost – residualValueAmount) / leaseTerm;
if (monthlyDepreciation < 0) monthlyDepreciation = 0;
// Step 4: Monthly Rent Charge
// (Cap Cost + Residual) * Money Factor
var monthlyRentCharge = (capCost + residualValueAmount) * moneyFactor;
// Step 5: Base Payment
var basePayment = monthlyDepreciation + monthlyRentCharge;
// Step 6: Total Payment with Tax
var monthlyTax = basePayment * (taxRate / 100);
var totalMonthlyPayment = basePayment + monthlyTax;
// Format Currency Function
function formatCurrency(num) {
return "$" + num.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
}
// Display Results
document.getElementById("monthlyPaymentDisplay").innerText = formatCurrency(totalMonthlyPayment);
document.getElementById("resGrossCap").innerText = formatCurrency(capCost);
document.getElementById("resResidual").innerText = formatCurrency(residualValueAmount);
document.getElementById("resDepreciation").innerText = formatCurrency(monthlyDepreciation) + "/mo";
document.getElementById("resRentCharge").innerText = formatCurrency(monthlyRentCharge) + "/mo";
document.getElementById("resBasePayment").innerText = formatCurrency(basePayment) + "/mo";
document.getElementById("resTax").innerText = formatCurrency(monthlyTax) + "/mo";
}
// Run calculation once on load
window.onload = function() {
calculateLeasePayment();
};