Cd Calculator Interest

Car Lease Payment Calculator

function calculateLeasePayment() { var msrp = parseFloat(document.getElementById("msrp").value); var salesPrice = parseFloat(document.getElementById("salesPrice").value); var downPayment = parseFloat(document.getElementById("downPayment").value) || 0; var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0; var term = parseInt(document.getElementById("leaseTerm").value); var residualPercent = parseFloat(document.getElementById("residualPercent").value); var moneyFactor = parseFloat(document.getElementById("moneyFactor").value); var taxRate = parseFloat(document.getElementById("taxRate").value) / 100; if (isNaN(msrp) || isNaN(salesPrice) || isNaN(term) || isNaN(residualPercent) || isNaN(moneyFactor)) { alert("Please enter valid numbers in all required fields."); return; } // 1. Calculate Gross Cap Cost var capCost = salesPrice – downPayment – tradeIn; // 2. Calculate Residual Value var residualValue = msrp * (residualPercent / 100); // 3. Monthly Depreciation var monthlyDepreciation = (capCost – residualValue) / term; if (monthlyDepreciation < 0) monthlyDepreciation = 0; // 4. Monthly Finance Charge (Rent Charge) var monthlyFinance = (capCost + residualValue) * moneyFactor; // 5. Subtotal and Tax var basePayment = monthlyDepreciation + monthlyFinance; var monthlyTax = basePayment * taxRate; // 6. Total Payment var totalPayment = basePayment + monthlyTax; // Update DOM document.getElementById("resCapCost").innerText = "$" + capCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("resResidual").innerText = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("resDepreciation").innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("resFinance").innerText = "$" + monthlyFinance.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"; }

Understanding How Your Car Lease Payment is Calculated

Leasing a car can be a complex financial arrangement. Unlike a traditional auto loan where you pay down the entire value of the vehicle, a lease essentially pays for the vehicle's depreciation during the time you drive it, plus interest and taxes.

Key Components of a Car Lease

• Gross Capitalized Cost: This is the negotiated price of the vehicle. To get a lower payment, you must negotiate this price just as you would if you were buying the car.
• Residual Value: This is the estimated value of the car at the end of the lease term. It is set by the leasing company. A higher residual value usually results in a lower monthly payment.
• Money Factor: This represents the interest rate on a lease. To convert the money factor to a standard APR, multiply it by 2400. For example, a money factor of 0.00125 equals a 3% APR.
• Lease Term: The duration of the lease, typically expressed in months (e.g., 24, 36, or 48 months).

The Math Behind the Lease

The calculation consists of three main parts: Depreciation, Finance Charge, and Tax.

1. Depreciation Fee: (Net Cap Cost – Residual Value) / Term. This covers the loss in the car's value while you use it.

2. Finance Fee (Rent Charge): (Net Cap Cost + Residual Value) × Money Factor. This is the fee for the "borrowed" value of the vehicle.

3. Sales Tax: In most states, sales tax is applied to the monthly payment rather than the full value of the vehicle.

Example Calculation

Imagine you are leasing a car with an MSRP of $40,000. You negotiate the price down to $38,000. You put $2,000 down, making your Cap Cost $36,000. If the 36-month residual is 60% ($24,000) and the money factor is 0.0015:

• Monthly Depreciation: ($36,000 – $24,000) / 36 = $333.33
• Monthly Finance Charge: ($36,000 + $24,000) × 0.0015 = $90.00
• Base Payment: $333.33 + $90.00 = $423.33
• With 7% Tax: $423.33 + $29.63 = $452.96 Total

How to Get the Best Lease Deal

To minimize your monthly payment, focus on three things: negotiating a lower sales price, choosing a vehicle with a high residual value, and ensuring you have a competitive money factor based on your credit score. Avoid putting too much money down on a lease (Cap Cost Reduction), as you may lose that money if the vehicle is totaled early in the term.