Interest Rate Calculator in Ethiopia

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Car Lease Monthly Payment Calculator

Estimate your monthly lease payment based on the vehicle price, money factor, and residual value.

(APR / 2400)

Your Estimated Payment

$0.00
Monthly Depreciation: $0.00
Monthly Rent Charge: $0.00
Total Cost of Lease: $0.00
function calculateLeasePayment() { var msrp = parseFloat(document.getElementById('msrp').value); var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0; var term = parseInt(document.getElementById('leaseTerm').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var residualPercent = parseFloat(document.getElementById('residualPercent').value); if (isNaN(msrp) || isNaN(term) || isNaN(moneyFactor) || isNaN(residualPercent) || msrp <= 0 || term <= 0) { alert("Please enter valid numbers for all required fields."); return; } // 1. Calculate Residual Value in Dollars var residualValue = msrp * (residualPercent / 100); // 2. Calculate Net Capitalized Cost var netCapCost = msrp – downPayment – tradeIn; if (netCapCost < residualValue) { alert("Capitalized cost cannot be less than residual value. Please adjust your down payment or vehicle price."); return; } // 3. Calculate Monthly Depreciation var monthlyDepreciation = (netCapCost – residualValue) / term; // 4. Calculate Monthly Rent Charge var monthlyRentCharge = (netCapCost + residualValue) * moneyFactor; // 5. Total Monthly Payment (pre-tax) var totalMonthlyPayment = monthlyDepreciation + monthlyRentCharge; var totalCost = (totalMonthlyPayment * term) + downPayment + tradeIn; document.getElementById('monthlyPaymentOutput').innerText = '$' + totalMonthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationOutput').innerText = '$' + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('rentChargeOutput').innerText = '$' + monthlyRentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalCostOutput').innerText = '$' + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResult').style.display = 'block'; }

Understanding Your Car Lease Calculation

Leasing a vehicle is often more complex than a traditional purchase because you aren't paying for the entire car; you are paying for the depreciation that occurs during your time behind the wheel, plus interest (known as the money factor).

Key Components of a Car Lease

  • Gross Capitalized Cost: This is the negotiated price of the vehicle plus any additional fees or taxes rolled into the lease.
  • Residual Value: This is the projected value of the car at the end of the lease term. It is set by the leasing company and expressed as a percentage of the original MSRP.
  • Money Factor: This represents the interest rate on the lease. To convert a money factor to an APR, multiply it by 2400 (e.g., 0.00125 * 2400 = 3%).
  • Capitalized Cost Reduction: Any down payment, trade-in value, or manufacturer rebates that reduce the amount you are financing.

How the Math Works

The monthly payment is comprised of two main parts:

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

Example Calculation

Imagine you lease a car with an MSRP of $40,000. You put $2,000 down, and the manufacturer offers a 60% residual value for a 36-month term with a money factor of 0.0015.

  • Net Cap Cost: $40,000 – $2,000 = $38,000
  • Residual Value: $40,000 × 0.60 = $24,000
  • Monthly Depreciation: ($38,000 – $24,000) / 36 = $388.89
  • Monthly Rent Charge: ($38,000 + $24,000) × 0.0015 = $93.00
  • Total Monthly Payment: $388.89 + $93.00 = $481.89

Note: This calculator provides an estimate. It does not include local sales taxes, registration fees, or acquisition fees, which vary by state and dealership.

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