.lease-calc-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e1e1e1;
border-radius: 12px;
background-color: #ffffff;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
color: #333;
}
.lease-calc-header {
text-align: center;
margin-bottom: 30px;
}
.lease-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.lease-calc-grid { grid-template-columns: 1fr; }
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
font-weight: 600;
margin-bottom: 8px;
font-size: 14px;
color: #444;
}
.input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
box-sizing: border-box;
font-size: 16px;
}
.calc-button {
grid-column: 1 / -1;
background-color: #0073aa;
color: white;
padding: 15px;
border: none;
border-radius: 6px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.calc-button:hover {
background-color: #005177;
}
.lease-result-box {
margin-top: 30px;
padding: 20px;
background-color: #f9f9f9;
border-radius: 8px;
border-left: 5px solid #0073aa;
display: none;
}
.result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
}
.result-total {
font-size: 24px;
font-weight: 800;
color: #0073aa;
border-top: 1px solid #ddd;
padding-top: 10px;
margin-top: 10px;
}
.lease-article {
margin-top: 40px;
line-height: 1.6;
color: #444;
}
.lease-article h2 { color: #222; margin-top: 30px; }
.lease-article h3 { color: #333; margin-top: 20px; }
.lease-article ul { padding-left: 20px; }
MSRP (Sticker Price) ($)
Negotiated Sales Price ($)
Down Payment ($)
Trade-in Allowance ($)
Lease Term (Months)
Money Factor (e.g. 0.00125)
Residual Value (%)
Sales Tax Rate (%)
Calculate Monthly Payment
Gross Capitalized Cost:
Residual Value:
Monthly Depreciation:
Monthly Rent Charge:
Monthly Tax:
Total Monthly Payment:
How Car Lease Payments are Calculated
Unlike a traditional auto loan where you pay for the entire value of the vehicle, a lease payment is primarily based on the vehicle's depreciation during the time you drive it. Understanding the components of a lease can save you thousands of dollars at the dealership.
Key Lease Definitions
MSRP: The Manufacturer's Suggested Retail Price. This is the starting point for calculating the residual value.Negotiated Sales Price: Also known as the "Gross Capitalized Cost." This is the actual price you agree to pay for the car before incentives and down payments. Always negotiate this number!Residual Value: The estimated value of the car at the end of the lease. This is set by the leasing company. A higher residual value usually means a lower monthly payment.Money Factor: This is the interest rate on a lease. To convert it to a standard APR, multiply the money factor by 2,400. For example, 0.00125 x 2400 = 3% APR.Cap Cost Reduction: This is your down payment, trade-in credit, and any rebates that reduce the amount being financed.
The Math Behind the Payment
The calculation consists of three main parts:
Monthly Depreciation: (Adjusted Cap Cost – Residual Value) / Lease TermMonthly Rent Charge: (Adjusted Cap Cost + Residual Value) × Money FactorMonthly Tax: (Depreciation + Rent Charge) × Sales Tax Rate
Example Calculation
Imagine a car with an MSRP of $35,000, a negotiated price of $32,000, and a 60% residual value after 36 months. If you put $2,000 down and have a money factor of 0.00125:
Adjusted Cap Cost: $32,000 – $2,000 = $30,000Residual Value: $35,000 × 0.60 = $21,000Depreciation Fee: ($30,000 – $21,000) / 36 = $250.00Rent Charge: ($30,000 + $21,000) × 0.00125 = $63.75Base Payment: $250.00 + $63.75 = $313.75
With a 7.5% tax rate, the final payment would be approximately $337.28 per month.
function calculateLeasePayment() {
var msrp = parseFloat(document.getElementById('msrp').value);
var salesPrice = parseFloat(document.getElementById('salesPrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var tradeIn = parseFloat(document.getElementById('tradeIn').value);
var term = parseFloat(document.getElementById('leaseTerm').value);
var moneyFactor = parseFloat(document.getElementById('moneyFactor').value);
var resPct = parseFloat(document.getElementById('residualPercent').value);
var taxRate = parseFloat(document.getElementById('taxRate').value);
if (isNaN(msrp) || isNaN(salesPrice) || isNaN(term) || isNaN(moneyFactor) || term <= 0) {
alert("Please enter valid numeric values for all required fields.");
return;
}
// 1. Calculate Adjusted Capitalized Cost
var adjCapCost = salesPrice – downPayment – tradeIn;
// 2. Calculate Residual Value
var residualValue = msrp * (resPct / 100);
// 3. Calculate Monthly Depreciation
var depreciationTotal = adjCapCost – residualValue;
var monthlyDepreciation = depreciationTotal / term;
// Ensure depreciation isn't negative (though rare in leases)
if (monthlyDepreciation < 0) monthlyDepreciation = 0;
// 4. Calculate Monthly Rent Charge
// Formula: (Adj Cap Cost + Residual Value) * Money Factor
var monthlyRent = (adjCapCost + residualValue) * moneyFactor;
// 5. Calculate Base Monthly Payment
var basePayment = monthlyDepreciation + monthlyRent;
// 6. Calculate Tax
var monthlyTax = basePayment * (taxRate / 100);
// 7. Total Payment
var totalPayment = basePayment + monthlyTax;
// Display Results
document.getElementById('resGrossCap').innerText = "$" + adjCapCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resResidual').innerText = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resDepreciation').innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resRent').innerText = "$" + monthlyRent.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTax').innerText = "$" + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotal').innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('leaseResult').style.display = 'block';
}