Interest Rate Investment Calculator

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Auto Lease Monthly Payment Calculator

Estimate your monthly car lease payments based on MSRP, money factor, and residual value.

Estimated Monthly Payment:
$0.00
Depreciation: $0.00
Rent Charge: $0.00
Tax: $0.00

Understanding Your Car Lease Calculation

Leasing a vehicle is significantly different from financing a purchase. Instead of paying for the entire value of the car, you are essentially paying for the depreciation that occurs during the time you drive it, plus a financing fee known as the money factor.

Key Lease Components Explained

  • MSRP: The Manufacturer's Suggested Retail Price. This is used primarily to calculate the Residual Value.
  • Negotiated Sale Price: This is the actual price you agreed upon with the dealer. Always negotiate this price just as you would if buying the car.
  • Residual Value: This is the estimated value of the car at the end of the lease. It is expressed as a percentage of the MSRP. A higher residual value results in a lower monthly payment.
  • Money Factor: This represents the interest rate on the lease. To convert a money factor to a standard APR, multiply it by 2400. For example, a money factor of 0.00125 is equal to a 3% APR.

How the Math Works

The calculation is broken into three main parts:

  1. Depreciation Fee: (Adjusted Capitalized Cost – Residual Value) / Lease Term.
  2. Rent Charge (Interest): (Adjusted Capitalized Cost + Residual Value) × Money Factor.
  3. Sales Tax: Most states apply sales tax to the monthly payment amount.

Example Calculation

If you lease a car with a negotiated price of $40,000, put $5,000 down (making your Adjusted Cap Cost $35,000), and the residual value is $25,000 over 36 months with a money factor of 0.0015:

  • Depreciation: ($35,000 – $25,000) / 36 = $277.78
  • Rent Charge: ($35,000 + $25,000) × 0.0015 = $90.00
  • Base Payment: $277.78 + $90.00 = $367.78
function calculateLeasePayment() { var msrp = parseFloat(document.getElementById('msrp').value); var salePrice = parseFloat(document.getElementById('salePrice').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var leaseTerm = parseFloat(document.getElementById('leaseTerm').value); var residualPercent = parseFloat(document.getElementById('residualPercent').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var taxRate = parseFloat(document.getElementById('taxRate').value); if (isNaN(msrp) || isNaN(salePrice) || isNaN(leaseTerm) || leaseTerm <= 0) { alert("Please enter valid numbers for the required fields."); return; } // 1. Calculate Residual Value var residualValue = msrp * (residualPercent / 100); // 2. Adjusted Capitalized Cost var adjCapCost = salePrice – downPayment; // 3. Monthly Depreciation var monthlyDepreciation = (adjCapCost – residualValue) / leaseTerm; if (monthlyDepreciation < 0) monthlyDepreciation = 0; // 4. Monthly Rent Charge (Interest) var monthlyRentCharge = (adjCapCost + residualValue) * moneyFactor; // 5. Base Monthly Payment var basePayment = monthlyDepreciation + monthlyRentCharge; // 6. Monthly Tax var monthlyTax = basePayment * (taxRate / 100); // 7. Total Monthly Payment var totalPayment = basePayment + monthlyTax; // Display Results document.getElementById('leaseResultBox').style.display = 'block'; document.getElementById('totalMonthly').innerHTML = '$' + totalPayment.toFixed(2); document.getElementById('deprecPortion').innerHTML = '$' + monthlyDepreciation.toFixed(2); document.getElementById('rentPortion').innerHTML = '$' + monthlyRentCharge.toFixed(2); document.getElementById('taxPortion').innerHTML = '$' + monthlyTax.toFixed(2); }

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