Cd Interest Rates Calculator

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Advanced Car Lease Calculator

24 Months 36 Months 48 Months
Ex: 0.00125 or enter APR like 3.0

Lease Estimate

Monthly Base Payment: $0.00
Monthly Tax: $0.00
Total Monthly Payment: $0.00

Residual Value: $0.00

Total Cost of Lease: $0.00

How Does a Car Lease Calculation Work?

Leasing a vehicle is often more complex than a standard purchase because you are essentially paying for the depreciation of the car over a fixed period, plus finance charges. Understanding these components can save you thousands at the dealership.

1. The Capitalized Cost

This is the "selling price" of the car. Just like buying a car, you should negotiate the MSRP down. Any down payment or trade-in value is subtracted from this to create the Adjusted Cap Cost.

2. Residual Value

This is what the leasing company predicts the car will be worth at the end of your term. A 60% residual on a $35,000 car means the car is expected to be worth $21,000 after the lease. You only pay for the $14,000 difference.

3. The Money Factor

This is the lease's version of an interest rate. If a dealer gives you a percentage (like 3%), divide it by 2400 to get the money factor (0.00125). A lower money factor means lower finance charges.

Standard Lease Formula

  • Depreciation Fee = (Adjusted Cap Cost – Residual Value) ÷ Term
  • Finance Fee = (Adjusted Cap Cost + Residual Value) × Money Factor
  • Monthly Base Payment = Depreciation Fee + Finance Fee

Real-World Example

Imagine a car priced at $40,000 with a $4,000 down payment. Your adjusted cap cost is $36,000. If the residual is 55% ($22,000) for 36 months:

  • Depreciation: ($36,000 – $22,000) / 36 = $388.89
  • Finance Fee (at 0.0015 MF): ($36,000 + $22,000) * 0.0015 = $87.00
  • Total Base Payment: $475.89
function calculateLease() { var vehiclePrice = parseFloat(document.getElementById('vehiclePrice').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var tradeIn = parseFloat(document.getElementById('tradeIn').value); var leaseTerm = parseFloat(document.getElementById('leaseTerm').value); var residualPercent = parseFloat(document.getElementById('residualPercent').value); var mfInput = parseFloat(document.getElementById('moneyFactor').value); var salesTax = parseFloat(document.getElementById('salesTax').value); if (isNaN(vehiclePrice) || vehiclePrice 0.1) var moneyFactor = mfInput; if (mfInput > 0.5) { moneyFactor = mfInput / 2400; } var adjCapCost = vehiclePrice – downPayment – tradeIn; var residualValue = vehiclePrice * (residualPercent / 100); // Depreciation Fee var depreciationFee = (adjCapCost – residualValue) / leaseTerm; if (depreciationFee < 0) depreciationFee = 0; // Finance Fee var financeFee = (adjCapCost + residualValue) * moneyFactor; // Base Payment var basePayment = depreciationFee + financeFee; // Tax var monthlyTax = basePayment * (salesTax / 100); // Total var totalMonthly = basePayment + monthlyTax; var totalLeaseCost = (totalMonthly * leaseTerm) + downPayment + tradeIn; // Display Results document.getElementById('basePayment').innerText = "$" + basePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyTax').innerText = "$" + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalPayment').innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('residualDollars').innerText = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalLeaseCost').innerText = "$" + totalLeaseCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultArea').style.display = 'block'; }

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