How to Calculate Future Value with Different Interest Rates

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Car Lease Calculator

Estimate your monthly car lease payments with precision.

Residual Amount: $0.00
Monthly Depreciation: $0.00
Monthly Rent Charge: $0.00
Monthly Sales Tax: $0.00
Total Monthly Payment: $0.00

How Car Lease Payments are Calculated

Leasing a car is different from buying one because you are only paying for the vehicle's depreciation during the time you drive it, plus interest and taxes. This calculator breaks down the four main components of a lease payment:

  • Depreciation Fee: This covers the loss in value of the car over the lease term. It is calculated as (Adjusted Capitalized Cost – Residual Value) / Term.
  • Rent Charge: This is the interest you pay to the leasing company. It uses a "Money Factor," which is derived from the APR (APR / 2400).
  • Sales Tax: In most states, sales tax is applied to the monthly payment rather than the full price of the car.

Key Lease Terms Explained

MSRP: The Manufacturer's Suggested Retail Price. This is used to calculate the residual value.

Gross Capitalized Cost: The negotiated price of the vehicle plus any added fees or taxes you roll into the lease.

Residual Value: The predicted value of the car at the end of the lease. High residual values lead to lower monthly payments.

Money Factor: The interest rate expressed as a decimal. To find your APR from a money factor, multiply it by 2400.

Example Calculation

If you lease a car with a $35,000 MSRP and a $32,000 sales price, with a 58% residual value over 36 months and a 5% APR:

  1. Residual Value = $35,000 * 0.58 = $20,300.
  2. Depreciation = ($32,000 – $20,300) / 36 = $325.00/month.
  3. Money Factor = 5 / 2400 = 0.002083.
  4. Rent Charge = ($32,000 + $20,300) * 0.002083 = $108.96/month.
  5. Total before tax = $433.96/month.
function calculateLease() { // Fetch inputs var msrp = parseFloat(document.getElementById("msrp").value); var salePrice = parseFloat(document.getElementById("salePrice").value); var downPayment = parseFloat(document.getElementById("downPayment").value) || 0; var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0; var term = parseFloat(document.getElementById("leaseTerm").value); var apr = parseFloat(document.getElementById("apr").value); var residualPercent = parseFloat(document.getElementById("residual").value); var taxRate = parseFloat(document.getElementById("taxRate").value) || 0; if (isNaN(msrp) || isNaN(salePrice) || isNaN(term) || isNaN(apr) || isNaN(residualPercent) || term <= 0) { alert("Please enter valid numbers in all required fields."); return; } // 1. Calculate Capitalized Cost var adjCapCost = salePrice – downPayment – tradeIn; // 2. Calculate Residual Value var resValue = msrp * (residualPercent / 100); // 3. Calculate Monthly Depreciation var monthlyDepreciation = (adjCapCost – resValue) / term; if (monthlyDepreciation < 0) monthlyDepreciation = 0; // 4. Calculate Rent Charge (Interest) // Money Factor = APR / 2400 var moneyFactor = apr / 2400; var monthlyRentCharge = (adjCapCost + resValue) * moneyFactor; // 5. Calculate Subtotal and Tax var subtotal = monthlyDepreciation + monthlyRentCharge; var monthlyTax = subtotal * (taxRate / 100); var totalPayment = subtotal + monthlyTax; // Update UI document.getElementById("resValueDisplay").innerText = "$" + resValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("depreciationDisplay").innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("rentChargeDisplay").innerText = "$" + monthlyRentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("taxDisplay").innerText = "$" + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalPaymentDisplay").innerText = "$" + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); // Show result box document.getElementById("lease-result").style.display = "block"; }

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