Home Equity Loan Rates Massachusetts Calculator

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Professional Car Lease Calculator

24 Months 36 Months 48 Months 60 Months
APR / 2400 = Money Factor

Lease Summary

Monthly Payment: $0.00
Depreciation Fee: $0.00
Finance Fee: $0.00
Tax per Month: $0.00
Total Capitalized Cost: $0.00
Residual Value: $0.00
Total Cost of Lease: $0.00
function calculateLease() { var carPrice = parseFloat(document.getElementById('carPrice').value) || 0; var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0; var term = parseFloat(document.getElementById('leaseTerm').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value) || 0; var residualPercent = parseFloat(document.getElementById('residualPercent').value) || 0; var taxRate = parseFloat(document.getElementById('salesTax').value) || 0; // 1. Gross Capitalized Cost (Assuming no extra fees for simplicity) var capCost = carPrice – downPayment – tradeIn; // 2. Residual Value var residualValue = carPrice * (residualPercent / 100); // 3. Depreciation Fee // (Net Cap Cost – Residual Value) / Term var depreciation = (capCost – residualValue) / term; if (depreciation < 0) depreciation = 0; // 4. Finance Fee (Money Factor) // (Net Cap Cost + Residual Value) * Money Factor var finance = (capCost + residualValue) * moneyFactor; // 5. Monthly Subtotal var subtotal = depreciation + finance; // 6. Tax var tax = subtotal * (taxRate / 100); // 7. Total Monthly Payment var totalMonthly = subtotal + tax; // 8. Total Cost of Lease var totalOutofPocket = downPayment + tradeIn + (totalMonthly * term); // Update UI document.getElementById('totalMonthly').innerHTML = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationFee').innerHTML = '$' + depreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('financeFee').innerHTML = '$' + finance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('taxFee').innerHTML = '$' + tax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalCapCost').innerHTML = '$' + capCost.toLocaleString(); document.getElementById('resValueAmount').innerHTML = '$' + residualValue.toLocaleString(); document.getElementById('totalLeaseCost').innerHTML = '$' + totalOutofPocket.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResult').style.display = 'block'; }

Understanding How Your Car Lease is Calculated

A car lease can often feel more complex than a traditional loan because it involves variables like Residual Value and Money Factor. Instead of paying for the entire value of the vehicle, you are essentially paying for the depreciation that occurs during the time you drive it, plus interest and taxes.

Key Leasing Terms Explained

  • MSRP/Agreed Price: The sticker price of the car or the negotiated price you settled on with the dealer before any incentives.
  • 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 financing less depreciation.
  • Money Factor: This is the interest rate on a lease. To convert this to a familiar APR, multiply the Money Factor by 2,400. For example, a money factor of 0.00125 equals a 3% APR.
  • Capitalized Cost: Often called "Cap Cost," this is the final price of the vehicle minus any down payments or trade-ins.

Example Calculation

Imagine you are leasing a car with a $40,000 MSRP:

  1. Agreed Price: $38,000 after negotiation.
  2. Down Payment: $3,000 (Your Net Cap Cost is $35,000).
  3. Residual Value: 60% of MSRP = $24,000.
  4. Term: 36 Months.
  5. Depreciation: ($35,000 – $24,000) / 36 = $305.55/mo.
  6. Rent Charge: ($35,000 + $24,000) * 0.0015 = $88.50/mo.
  7. Base Payment: $394.05 + Sales Tax.

Tips for Lowering Your Lease Payment

To get the best deal, focus on three things: negotiating the Gross Capitalized Cost (the car's price), finding vehicles with high Residual Values (typically luxury brands or popular SUVs), and ensuring the dealer isn't marking up the Money Factor beyond the "Buy Rate" offered by the manufacturer's captive finance company.

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