Tax Calculator Indiana

Car Lease Calculator

24 Months 36 Months 48 Months 60 Months

APR / 2400 = Money Factor

Estimated Monthly Payment: $0.00

Gross Cap Cost:

Adjusted Cap Cost:

Residual Value:

Monthly Depreciation:

Monthly Rent Charge:

Monthly Tax:

function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').value) || 0; var salePrice = parseFloat(document.getElementById('salePrice').value) || 0; var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0; var term = parseInt(document.getElementById('leaseTerm').value) || 36; var residualPerc = parseFloat(document.getElementById('residualPerc').value) || 0; var mf = parseFloat(document.getElementById('moneyFactor').value) || 0; var taxRate = parseFloat(document.getElementById('salesTax').value) || 0; if (msrp <= 0 || salePrice <= 0) { alert('Please enter valid vehicle prices.'); return; } // 1. Calculate Residual Value var residualValue = msrp * (residualPerc / 100); // 2. Calculate Adjusted Cap Cost var adjCapCost = salePrice – downPayment – tradeIn; // 3. Monthly Depreciation Fee var depreciationFee = (adjCapCost – residualValue) / term; if (depreciationFee < 0) depreciationFee = 0; // 4. Monthly Rent Charge (Finance Fee) // Formula: (Adjusted Cap Cost + Residual Value) * Money Factor var rentCharge = (adjCapCost + residualValue) * mf; // 5. Subtotal Payment var subtotal = depreciationFee + rentCharge; // 6. Tax var monthlyTax = subtotal * (taxRate / 100); // 7. Total Monthly Payment var totalMonthly = subtotal + monthlyTax; // Display Results document.getElementById('resGrossCap').innerText = '$' + salePrice.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resAdjCap').innerText = '$' + adjCapCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resResidualVal').innerText = '$' + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMonthlyDep').innerText = '$' + depreciationFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMonthlyRent').innerText = '$' + rentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMonthlyTax').innerText = '$' + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyTotal').innerText = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResult').style.display = 'block'; }

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Understanding Your Car Lease Calculation

Leasing a car is often more complex than a standard auto loan because you are only paying for the vehicle's depreciation during the time you drive it, rather than the total value of the car. To get the best deal, you must understand the key components that determine your monthly payment.

Key Lease Terms Defined

• MSRP: The Manufacturer's Suggested Retail Price. This is used primarily to calculate the Residual Value.
• Gross Capitalized Cost: This is the negotiated price of the vehicle. Just like buying a car, you should always negotiate the "sale price" before mentioning a lease.
• Residual Value: This is what the leasing company estimates the car will be worth at the end of your lease. A higher residual value usually results in a lower monthly payment.
• Money Factor: This is the interest rate on a lease. To convert this to a standard APR, multiply the money factor by 2400. For example, a money factor of 0.00125 is equal to a 3% APR.
• Adjusted Capitalized Cost: The negotiated price minus any down payments, trade-ins, or rebates. This is the actual amount being financed.

The Math Behind the Payment

Your monthly lease payment consists of three main parts:

1. Depreciation Fee: (Adjusted Cap Cost – Residual Value) ÷ Term. This covers the value the car loses while you have it.
2. Rent Charge: (Adjusted Cap Cost + Residual Value) × Money Factor. This is the "interest" you pay the bank.
3. Sales Tax: In most states, you pay sales tax on the monthly payment amount, not the total value of the car.

Example Calculation

Imagine you want to lease a SUV with an MSRP of $40,000. You negotiate the price down to $38,000 and put $2,000 down. The 36-month residual is 60% ($24,000) and the money factor is 0.0015.

Adj. Cap Cost: $38,000 – $2,000 = $36,000
Depreciation: ($36,000 – $24,000) / 36 = $333.33/mo
Rent Charge: ($36,000 + $24,000) * 0.0015 = $90.00/mo
Base Payment: $333.33 + $90.00 = $423.33/mo (plus tax)

Pro Tip: Avoid putting large sums of money down on a lease ("Cap Cost Reduction"). If the car is totaled or stolen shortly after you drive it off the lot, your insurance pays the leasing company, and you rarely get your down payment back.