Retirement Money Calculator

Auto Lease Calculator

Estimated Monthly Payment

Monthly Depreciation:

Monthly Rent Charge:

Monthly Sales Tax:

Residual Value ($):

Total Lease Cost:

function calculateCarLease() { var msrp = parseFloat(document.getElementById('leaseMsrp').value) || 0; var price = parseFloat(document.getElementById('leasePrice').value) || 0; var down = parseFloat(document.getElementById('leaseDown').value) || 0; var trade = parseFloat(document.getElementById('leaseTrade').value) || 0; var term = parseFloat(document.getElementById('leaseTerm').value) || 0; var residualPct = parseFloat(document.getElementById('leaseResidual').value) || 0; var mf = parseFloat(document.getElementById('leaseMf').value) || 0; var taxRate = parseFloat(document.getElementById('leaseTax').value) || 0; if (term <= 0) { alert("Please enter a valid lease term."); return; } // 1. Calculate Residual Value var residualValue = msrp * (residualPct / 100); // 2. Calculate Adjusted Capitalized Cost var adjCapCost = price – down – trade; // 3. Monthly Depreciation Fee var depreciationFee = (adjCapCost – residualValue) / term; if (depreciationFee < 0) depreciationFee = 0; // 4. Monthly Finance Fee (Rent Charge) // Formula: (Adj Cap Cost + Residual Value) * Money Factor var financeFee = (adjCapCost + residualValue) * mf; // 5. Base Monthly Payment var basePayment = depreciationFee + financeFee; // 6. Monthly Tax var monthlyTax = basePayment * (taxRate / 100); // 7. Total Monthly Payment var totalMonthly = basePayment + monthlyTax; // 8. Total Cost of Lease var totalCost = (totalMonthly * term) + down + trade; // Display results document.getElementById('monthlyTotal').innerText = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resDep').innerText = '$' + depreciationFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resRent').innerText = '$' + financeFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTax').innerText = '$' + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resVal').innerText = '$' + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalCost').innerText = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResultArea').style.display = 'block'; }

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How to Use the Car Lease Calculator

Deciphering a car lease contract can be intimidating. Unlike a standard car loan, lease payments are calculated based on the vehicle's projected depreciation rather than its full value. This calculator helps you break down the components of your monthly payment to ensure you are getting a fair deal from the dealership.

Key Components of a Lease Calculation

• MSRP (Manufacturer's Suggested Retail Price): This is the "sticker price" of the car. It is crucial because the Residual Value is calculated as a percentage of this number, regardless of what price you actually negotiate.
• Negotiated Price: Also known as the Gross Capitalized Cost. This is the price you agree to pay for the vehicle. Always negotiate the price of the car just as you would for a purchase.
• Residual Value: This is the car's estimated value at the end of the lease. A higher residual value is better for your monthly payment because you are only paying for the portion of the car's value that you use.
• 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 equivalent to a 3% APR.
• Capitalized Cost Reductions: These include your down payment, trade-in equity, and any manufacturer rebates. These lower the "Adjusted Capitalized Cost," which is the amount actually being financed.

The Lease Calculation Formula

The monthly lease payment consists of three main parts:

1. Depreciation Fee: (Adjusted Cap Cost – Residual Value) ÷ Term
2. Rent Charge (Interest): (Adjusted Cap Cost + Residual Value) × Money Factor
3. Sales Tax: (Depreciation Fee + Rent Charge) × Local Tax Rate

Example Calculation

Suppose you negotiate a car with an MSRP of $40,000 down to $37,000. You put $3,000 down, leaving an Adjusted Cap Cost of $34,000. If the Residual Value is 60% ($24,000), the Money Factor is 0.0015, and the term is 36 months:

• Depreciation: ($34,000 – $24,000) / 36 = $277.78
• Rent Charge: ($34,000 + $24,000) * 0.0015 = $87.00
• Base Payment: $277.78 + $87.00 = $364.78

Expert Tips for a Better Lease Deal

To lower your monthly payment, focus on negotiating a lower sales price and look for vehicles with high residual values. While putting money down (a "cap cost reduction") lowers your monthly payment, many experts recommend putting as little money down as possible on a lease. If the car is totaled or stolen shortly after you leave the lot, your down payment is often not recoverable from insurance.