Calculate Daily Interest

.lease-calc-container input, .lease-calc-container select { width: 100%; padding: 12px; margin: 8px 0 20px 0; display: inline-block; border: 1px solid #ccc; border-radius: 6px; box-sizing: border-box; font-size: 16px; } .lease-calc-btn { width: 100%; background-color: #0056b3; color: white; padding: 15px 20px; margin: 10px 0; border: none; border-radius: 6px; cursor: pointer; font-size: 18px; font-weight: bold; transition: background-color 0.3s; } .lease-calc-btn:hover { background-color: #004494; } .lease-result-box { background-color: #f8f9fa; padding: 20px; border-radius: 8px; border-left: 5px solid #0056b3; margin-top: 25px; display: none; } .lease-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; } @media (max-width: 600px) { .lease-grid { grid-template-columns: 1fr; } } .lease-label { font-weight: 600; color: #444; } .lease-summary-item { display: flex; justify-content: space-between; margin-bottom: 10px; border-bottom: 1px dashed #ddd; padding-bottom: 5px; }

24 Months 36 Months 48 Months 60 Months

(APR / 2400)

Understanding Your Car Lease Calculation

Leasing a vehicle can be more complex than traditional financing because you are only paying for the portion of the car's value that you use during the lease term. Our calculator breaks down the three primary components of a lease payment: Depreciation, Interest (Rent Charge), and Sales Tax.

1. Depreciation Fee

This is the largest part of your monthly payment. It represents the loss in the vehicle's value over time. It is calculated by taking the Gross Capitalized Cost (MSRP minus down payment/trade-in) and subtracting the Residual Value (the estimated value of the car at the end of the lease), then dividing by the number of months in the term.

2. Rent Charge (The Interest)

The "Money Factor" is essentially the interest rate on a lease. To convert an APR to a money factor, divide by 2400. Unlike a loan where interest is calculated on the remaining balance, a lease rent charge is calculated by adding the Net Cap Cost and the Residual Value together and multiplying by the Money Factor.

3. Sales Tax

In most states, sales tax is applied to the monthly payment rather than the full purchase price of the vehicle. Our calculator applies the tax rate directly to your base monthly payment.

Example Calculation

If you lease a car with an MSRP of $40,000, a 60% residual ($24,000), a 36-month term, and a $2,000 down payment:

• Capitalized Cost: $40,000 – $2,000 = $38,000
• Depreciation: ($38,000 – $24,000) / 36 = $388.89/mo
• Rent Charge: ($38,000 + $24,000) * 0.00125 = $77.50/mo
• Total Base: $466.39 + Tax

function calculateLeasePayment() { var msrp = parseFloat(document.getElementById("msrp").value); var downPayment = parseFloat(document.getElementById("downPayment").value); var term = parseInt(document.getElementById("term").value); var residualPercent = parseFloat(document.getElementById("residualValue").value); var moneyFactor = parseFloat(document.getElementById("moneyFactor").value); var taxRate = parseFloat(document.getElementById("salesTax").value); if (isNaN(msrp) || isNaN(downPayment) || isNaN(residualPercent) || isNaN(moneyFactor) || isNaN(taxRate)) { alert("Please enter valid numeric values in all fields."); return; } // 1. Calculate Residual Value var residualValue = msrp * (residualPercent / 100); // 2. Adjusted Capitalized Cost var adjCapCost = msrp – downPayment; // 3. Monthly Depreciation var monthlyDepreciation = (adjCapCost – residualValue) / term; if (monthlyDepreciation < 0) monthlyDepreciation = 0; // 4. Monthly Rent Charge (Interest) var monthlyRentCharge = (adjCapCost + residualValue) * moneyFactor; // 5. Base Monthly Payment var baseMonthly = monthlyDepreciation + monthlyRentCharge; // 6. Tax var monthlyTax = baseMonthly * (taxRate / 100); // 7. Total Payment var totalMonthly = baseMonthly + monthlyTax; // 8. Total Lease Cost var totalCost = (totalMonthly * term) + downPayment; var totalDepreciationValue = adjCapCost – residualValue; // Display results document.getElementById("basePay").innerText = "$" + baseMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("taxPay").innerText = "$" + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalMonthlyPay").innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalLeaseCost").innerText = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalDepreciation").innerText = "$" + totalDepreciationValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("leaseResult").style.display = "block"; // Smooth scroll to result on mobile if(window.innerWidth < 600) { document.getElementById("leaseResult").scrollIntoView({ behavior: 'smooth' }); } }