.lease-calc-input-group { margin-bottom: 15px; }
.lease-calc-input-group label { display: block; font-weight: 600; margin-bottom: 5px; color: #333; }
.lease-calc-input-group input { width: 100%; padding: 10px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; font-size: 16px; }
.lease-calc-button { background-color: #0073aa; color: white; padding: 12px 24px; border: none; border-radius: 4px; cursor: pointer; font-size: 18px; width: 100%; font-weight: bold; transition: background-color 0.3s; }
.lease-calc-button:hover { background-color: #005177; }
.lease-calc-results { margin-top: 25px; padding: 20px; background-color: #f9f9f9; border-radius: 6px; border-left: 5px solid #0073aa; }
.lease-calc-result-row { display: flex; justify-content: space-between; padding: 10px 0; border-bottom: 1px solid #eee; }
.lease-calc-result-row:last-child { border-bottom: none; }
.lease-calc-result-label { font-weight: 500; color: #555; }
.lease-calc-result-value { font-weight: 700; color: #0073aa; font-size: 1.1em; }
.lease-calc-article { margin-top: 40px; line-height: 1.6; color: #444; }
.lease-calc-article h2 { color: #222; border-bottom: 2px solid #eee; padding-bottom: 10px; margin-top: 30px; }
.lease-calc-article h3 { color: #333; margin-top: 20px; }
function calculateLeasePayment() {
var msrp = parseFloat(document.getElementById('msrp').value);
var downPayment = parseFloat(document.getElementById('downPayment').value) || 0;
var term = parseFloat(document.getElementById('leaseTerm').value);
var residualPercent = parseFloat(document.getElementById('residualValue').value);
var moneyFactor = parseFloat(document.getElementById('moneyFactor').value);
var taxRate = parseFloat(document.getElementById('salesTax').value) / 100;
if (isNaN(msrp) || isNaN(term) || isNaN(residualPercent) || isNaN(moneyFactor)) {
alert("Please enter valid numbers in all required fields.");
return;
}
// 1. Calculate Residual Value
var residualValueAmount = msrp * (residualPercent / 100);
// 2. Calculate Net Capitalized Cost
var netCapCost = msrp – downPayment;
// 3. Depreciation Fee = (Net Cap Cost – Residual Value) / Term
var depreciationFee = (netCapCost – residualValueAmount) / term;
// 4. Finance Fee (Rent Charge) = (Net Cap Cost + Residual Value) * Money Factor
var financeFee = (netCapCost + residualValueAmount) * moneyFactor;
// 5. Base Payment
var basePayment = depreciationFee + financeFee;
// 6. Tax
var monthlyTax = basePayment * taxRate;
// 7. Total Payment
var totalMonthly = basePayment + monthlyTax;
var totalLeaseCost = (totalMonthly * term) + downPayment;
// Display Results
document.getElementById('basePaymentRes').innerText = '$' + basePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('taxRes').innerText = '$' + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalPaymentRes').innerText = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalLeaseCostRes').innerText = '$' + totalLeaseCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('leaseResults').style.display = 'block';
}
Understanding How Car Lease Payments Are Calculated
Leasing a car is often more complex than a standard purchase because you aren't paying for the entire vehicle. Instead, you are paying for the depreciation that occurs during the time you drive it, plus interest and taxes. Using our car lease calculator helps you break down these hidden costs.
1. The MSRP and Negotiated Price
The Manufacturer's Suggested Retail Price (MSRP) is the starting point. However, the "Gross Capitalized Cost" (the price you agree upon) can often be lower than the MSRP. For this calculator, we use the MSRP as the primary base, but you can subtract any discounts from the "Down Payment" field to get an accurate result.
2. Residual Value
The residual value is what the car is expected to be worth at the end of your lease. It is expressed as a percentage of the MSRP. A higher residual value is actually better for your monthly payment because it means the car depreciates less, leaving you with a smaller gap to cover.
3. Money Factor: The Lease Interest Rate
The money factor is the lease version of an interest rate. It is written as a small decimal (e.g., 0.00125). To find the equivalent APR, multiply the money factor by 2400. Conversely, if a dealer gives you an APR of 3%, divide it by 2400 to get the money factor (0.00125) for this calculator.
Example Calculation
Imagine you lease a car with the following details:
- MSRP: $40,000
- Down Payment: $2,000
- Term: 36 Months
- Residual Value: 60% ($24,000)
- Money Factor: 0.0015 (3.6% APR)
In this scenario, your Depreciation Fee would be ($38,000 – $24,000) / 36 = $388.89. Your Finance Fee would be ($38,000 + $24,000) * 0.0015 = $93.00. Your base payment before tax would be $481.89.
How to Lower Your Lease Payment
To get a lower monthly payment, focus on three things: negotiating a lower purchase price (Cap Cost), finding vehicles with high residual values, and qualifying for a lower money factor through a strong credit score. Be wary of putting too much money down on a lease; if the car is totaled shortly after leaving the lot, that down payment is often lost.