Estimate your monthly lease payments with precision including depreciation and rent charge.
24 Months
36 Months
48 Months
60 Months
Ex: 0.00125 (equals 3% APR)
Estimated Monthly Payment
$0.00
Total Depreciation: $0Total Rent Charge: $0
Residual Value: $0Total Lease Cost: $0
How Car Lease Payments are Calculated
Unlike a standard auto loan, a car lease payment is primarily based on the difference between the vehicle's current price and its predicted value at the end of the term. This is known as depreciation. Our calculator uses the industry-standard formula to give you an accurate estimate.
The Three Components of a Lease Payment
Depreciation Fee: This covers the value the car loses during your lease. Formula: (Net Capitalized Cost – Residual Value) / Term.
Rent Charge (Money Factor): This is the "interest" on the lease. Formula: (Net Capitalized Cost + Residual Value) × Money Factor.
Sales Tax: Most states tax only the monthly payment, not the full value of the vehicle.
Important Terms to Know
Gross Capitalized Cost: The agreed-upon price of the vehicle, including any added options or fees.
Residual Value: The estimated value of the car at the end of the lease, usually expressed as a percentage of the MSRP. A higher residual value results in a lower monthly payment.
Money Factor: The interest rate on a lease. To convert a Money Factor to APR, multiply it by 2,400 (e.g., 0.00125 x 2400 = 3%).
Lease Example Scenario
If you lease a car worth $35,000 with a 60% residual after 36 months, you are responsible for the $14,000 difference (depreciation). If your Money Factor is 0.00125 and you put $2,000 down, your monthly payment would be roughly $464 including 7% tax.
function calculateLeasePayment() {
var msrp = parseFloat(document.getElementById('lease_price').value);
var residualPercent = parseFloat(document.getElementById('lease_residual').value);
var downPayment = parseFloat(document.getElementById('lease_down').value);
var tradeIn = parseFloat(document.getElementById('lease_trade').value);
var term = parseFloat(document.getElementById('lease_term').value);
var moneyFactor = parseFloat(document.getElementById('lease_apr').value);
var taxRate = parseFloat(document.getElementById('lease_tax').value);
if (isNaN(msrp) || isNaN(residualPercent) || isNaN(term)) {
alert("Please enter valid numbers for Price, Residual, and Term.");
return;
}
// 1. Calculate Net Capitalized Cost
var capCost = msrp – downPayment – tradeIn;
// 2. Calculate Residual Value
var residualValue = msrp * (residualPercent / 100);
// 3. Calculate Depreciation Fee
var depreciationFee = (capCost – residualValue) / term;
if (depreciationFee < 0) depreciationFee = 0;
// 4. Calculate Rent Charge (Finance Fee)
// Formula: (Cap Cost + Residual Value) * Money Factor
var rentCharge = (capCost + residualValue) * moneyFactor;
// 5. Monthly Subtotal
var subtotal = depreciationFee + rentCharge;
// 6. Tax
var monthlyTax = subtotal * (taxRate / 100);
// 7. Final Payment
var totalMonthly = subtotal + monthlyTax;
var totalCostOfLease = (totalMonthly * term) + downPayment + tradeIn;
// Display Results
document.getElementById('lease_result_area').style.display = 'block';
document.getElementById('monthly_payment_display').innerHTML = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_depreciation').innerHTML = '$' + (depreciationFee * term).toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('res_rent').innerHTML = '$' + (rentCharge * term).toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('res_residual_val').innerHTML = '$' + residualValue.toLocaleString(undefined, {maximumFractionDigits: 0});
document.getElementById('res_total_cost').innerHTML = '$' + totalCostOfLease.toLocaleString(undefined, {maximumFractionDigits: 0});
// Scroll to result
document.getElementById('lease_result_area').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}