Loan Estimate Calculator

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Auto Lease Payment Calculator

24 Months 36 Months 48 Months 60 Months

Estimated Monthly Payment

$0.00
Depreciation Fee: $0.00
Rent Charge (Interest): $0.00
Residual Value: $0.00
Total Monthly Tax: $0.00
function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var tradeIn = parseFloat(document.getElementById('tradeIn').value); var term = parseFloat(document.getElementById('leaseTerm').value); var resPercent = parseFloat(document.getElementById('residualPercent').value); var apr = parseFloat(document.getElementById('apr').value); var taxRate = parseFloat(document.getElementById('taxRate').value); if (isNaN(msrp) || msrp <= 0) { alert("Please enter a valid MSRP."); return; } var netCapCost = msrp – downPayment – tradeIn; var residualValue = msrp * (resPercent / 100); var moneyFactor = apr / 2400; // Monthly Depreciation Fee var monthlyDepreciation = (netCapCost – residualValue) / term; if (monthlyDepreciation < 0) monthlyDepreciation = 0; // Monthly Rent Charge var monthlyRent = (netCapCost + residualValue) * moneyFactor; // Subtotal var subtotal = monthlyDepreciation + monthlyRent; // Tax var monthlyTax = subtotal * (taxRate / 100); // Total Payment var totalMonthly = subtotal + monthlyTax; // Update UI document.getElementById('monthlyPaymentDisplay').innerText = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationPart').innerText = '$' + monthlyDepreciation.toFixed(2); document.getElementById('rentPart').innerText = '$' + monthlyRent.toFixed(2); document.getElementById('residualDisplay').innerText = '$' + residualValue.toFixed(2); document.getElementById('taxPart').innerText = '$' + monthlyTax.toFixed(2); document.getElementById('leaseResults').style.display = 'block'; }

How to Use the Car Lease Calculator

Leasing a car is a popular alternative to buying, offering lower monthly payments and the ability to drive a new vehicle every few years. However, lease math can be complex. Our calculator breaks down the "Gross Capitalized Cost," "Residual Value," and "Money Factor" to help you understand exactly what you are paying for.

Understanding the Key Lease Variables

  • Negotiated Price (Cap Cost): This is the total price of the vehicle you have agreed upon with the dealer. Always try to negotiate this price down just as you would for a purchase.
  • Residual Value: This is the estimated value of the car at the end of the lease term. Higher residual values lead to lower monthly payments because you are paying for less of the car's depreciation.
  • Money Factor: This is essentially the interest rate on a lease. To convert the Money Factor to a standard APR, multiply it by 2400.
  • Down Payment (Cap Cost Reduction): Money paid upfront to reduce the total amount being financed. Note that in many leases, a large down payment is risky because if the car is totaled early, you may not recover that cash.

Car Lease Calculation Example

Imagine you are leasing a SUV with an MSRP of $40,000. The dealer offers a 36-month lease with a 60% residual value and an APR of 4.8% (Money Factor of 0.002). You put $3,000 down.

  1. Net Cap Cost: $40,000 – $3,000 = $37,000.
  2. Residual Value: $40,000 × 0.60 = $24,000.
  3. Depreciation Fee: ($37,000 – $24,000) / 36 months = $361.11.
  4. Rent Charge: ($37,000 + $24,000) × 0.002 = $122.00.
  5. Total Base Payment: $361.11 + $122.00 = $483.11 (plus applicable sales tax).

Lease Tips for Beginners

When using our car lease calculator, remember to account for additional fees like the Acquisition Fee (usually $595-$995) and Disposition Fee (paid at the end of the lease). Also, pay close attention to the mileage limit. Most standard leases allow 10,000 to 12,000 miles per year. Exceeding these limits can result in heavy penalties, typically $0.15 to $0.25 per extra mile.

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