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Car Lease Monthly Payment Calculator

24 Months 36 Months 48 Months 60 Months

Estimated Monthly Payment

Depreciation Fee:

Finance Fee (Rent Charge):

Total Adjusted Cap Cost:

Residual Value:

function calculateLeasePayment() { var msrp = parseFloat(document.getElementById('msrp').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); if (isNaN(msrp) || isNaN(residualPercent) || isNaN(moneyFactor) || msrp <= 0) { alert("Please enter valid numbers for MSRP, Residual Value, and Money Factor."); return; } // 1. Calculate Gross Capitalized Cost (Assuming no additional fees for simple calculation) var capCostReduction = downPayment + tradeIn; var adjCapCost = msrp – capCostReduction; // 2. Calculate Residual Value var residualValue = msrp * (residualPercent / 100); // 3. Calculate Monthly Depreciation Fee var monthlyDepreciation = (adjCapCost – residualValue) / term; // 4. Calculate Monthly Finance Fee (Rent Charge) // Formula: (Adjusted Cap Cost + Residual Value) * Money Factor var monthlyFinance = (adjCapCost + residualValue) * moneyFactor; // 5. Total Payment var totalMonthly = monthlyDepreciation + monthlyFinance; if (totalMonthly < 0) { document.getElementById('monthlyPaymentOutput').innerText = "$0.00"; } else { document.getElementById('monthlyPaymentOutput').innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationFee').innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('financeFee').innerText = "$" + monthlyFinance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('adjCapCost').innerText = "$" + adjCapCost.toLocaleString(); document.getElementById('resValue').innerText = "$" + residualValue.toLocaleString(); document.getElementById('leaseResult').style.display = "block"; } }

Understanding How Your Car Lease is Calculated

Leasing a car is often more complex than a standard purchase because you aren't paying for the entire vehicle; you are paying for the depreciation that occurs during the time you drive it, plus a finance charge.

Key Leasing Terms Explained

  • MSRP: The Manufacturer's Suggested Retail Price. This is the "sticker price" of the car.
  • Adjusted Capitalized Cost: This is the final negotiated price of the car minus any down payments, trade-ins, or rebates. Think of this as the "loan amount" for the lease.
  • Residual Value: This is the estimated value of the car at the end of the lease term. Higher residual values lead to lower monthly payments because you are paying for less depreciation.
  • Money Factor: This is the interest rate for the lease. To convert a money factor to a standard APR (Annual Percentage Rate), multiply it by 2,400. For example, a money factor of 0.00125 is equal to a 3% APR.
  • Lease Term: The length of time you will keep the vehicle, usually expressed in months (24, 36, or 48).

The Math Behind the Payment

The monthly lease payment consists of two primary components:

  1. Depreciation Fee: (Adjusted Cap Cost – Residual Value) / Lease Term
  2. Finance Fee (Rent Charge): (Adjusted Cap Cost + Residual Value) × Money Factor

Adding these two figures together gives you your base monthly payment before taxes and local registration fees.

Example Calculation

Suppose you want to lease a car with an MSRP of $40,000. You negotiate the price down and put $2,000 down, leaving an Adjusted Cap Cost of $38,000. If the residual value is 60% ($24,000) for a 36-month term with a money factor of 0.0015:

  • Depreciation Fee: ($38,000 – $24,000) / 36 = $388.89
  • Finance Fee: ($38,000 + $24,000) × 0.0015 = $93.00
  • Total Monthly Payment: $388.89 + $93.00 = $481.89

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