Estimate your monthly lease payment using MSRP, Money Factor, and Residual Values.
Gross Capitalized Cost:
Residual Value:
Monthly Depreciation:
Monthly Rent Charge:
Base Monthly Payment:
Total Monthly (with Tax):
How Car Lease Payments are Calculated
Leasing a car is significantly different from financing a purchase. When you lease, you are essentially paying for the depreciation of the vehicle over the time you use it, plus interest and taxes. This calculator breaks down the three main components of a lease payment.
1. The Depreciation Fee
This is the largest portion of your payment. It is calculated by taking the "Adjusted Capitalized Cost" (the price you negotiated minus your down payment) and subtracting the "Residual Value" (what the car is worth at the end of the lease). This total amount is then divided by the number of months in the lease.
2. The Rent Charge (Interest)
The "Rent Charge" is the interest you pay to the leasing company. Instead of an APR, leasing companies use a Money Factor. To convert a Money Factor to an APR, multiply it by 2,400. For example, a money factor of 0.0015 is equivalent to a 3.6% APR.
The math for the rent charge is unique: (Adjusted Cap Cost + Residual Value) × Money Factor.
Realistic Leasing Example:
Vehicle MSRP: $40,000
Negotiated Price: $38,000
Down Payment: $2,000
Residual (60%): $24,000
Term: 36 Months
Money Factor: 0.00125 (3% APR)
Result: Monthly payment ~ $418.00 + tax
Key Leasing Terms You Should Know
MSRP: The Manufacturer's Suggested Retail Price. The residual value is always calculated based on this number, not your negotiated price.
Cap Cost Reductions: Any cash down payment, trade-in equity, or manufacturer rebates that lower the price of the car.
Residual Value: The predicted value of the car at the end of the lease. A higher residual value results in a lower monthly payment because you are paying for less depreciation.
Acquisition Fee: An upfront administrative fee charged by the leasing company (usually $595 to $995).
How to Get a Better Lease Deal
To lower your monthly payment, focus on these three levers:
Negotiate the Sales Price: Even though it's a lease, you can still negotiate the "Cap Cost" just like a purchase price.
Shop for High Residuals: Cars that hold their value better (like certain trucks and luxury SUVs) often have lower lease payments than cheaper cars that lose value quickly.
Check the Money Factor: Ask the dealer what the "buy rate" for the money factor is. Dealers sometimes mark up the interest rate to increase their profit.
function calculateLease() {
// Get Input Values
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 = parseInt(document.getElementById('leaseTerm').value);
var residualPercent = parseFloat(document.getElementById('residual').value);
var moneyFactor = parseFloat(document.getElementById('moneyFactor').value);
var taxRate = parseFloat(document.getElementById('taxRate').value) || 0;
// Validation
if (isNaN(msrp) || isNaN(salesPrice) || isNaN(term) || isNaN(residualPercent) || isNaN(moneyFactor)) {
alert("Please enter valid numbers in all required fields.");
return;
}
// 1. Calculate Residual Value
var residualValue = msrp * (residualPercent / 100);
// 2. Adjusted Capitalized Cost
var adjCapCost = salesPrice – downPayment – tradeIn;
// 3. Monthly Depreciation
var depreciationTotal = adjCapCost – residualValue;
var monthlyDepreciation = depreciationTotal / term;
// 4. Monthly Rent Charge
// Formula: (Net Cap Cost + Residual Value) * Money Factor
var monthlyRent = (adjCapCost + residualValue) * moneyFactor;
// 5. Base Monthly Payment
var basePayment = monthlyDepreciation + monthlyRent;
// 6. Tax Calculation (Most states tax the monthly payment)
var monthlyTax = basePayment * (taxRate / 100);
var totalPayment = basePayment + monthlyTax;
// Update UI
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('resRent').innerText = "$" + monthlyRent.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resBase').innerText = "$" + basePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotal').innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show Result Box
document.getElementById('lease-result').style.display = 'block';
// Smooth scroll to result
document.getElementById('lease-result').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}