Interest Rates Calculator India

Car Lease Monthly Payment Calculator

Lease Summary

Estimated Monthly Payment: $0.00

Monthly Depreciation: $0.00

Monthly Finance Fee (Rent): $0.00

Monthly Sales Tax: $0.00

Adjusted Capitalized Cost: $0.00

Residual Value: $0.00

function calculateLease() { var negotiatedPrice = parseFloat(document.getElementById('negotiatedPrice').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var tradeIn = parseFloat(document.getElementById('tradeIn').value); var term = 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(negotiatedPrice) || isNaN(downPayment) || isNaN(tradeIn) || isNaN(residualPercent) || isNaN(moneyFactor) || isNaN(taxRate)) { alert("Please enter valid numeric values for all fields."); return; } // 1. Calculate Adjusted Capitalized Cost var adjCapCost = negotiatedPrice – downPayment – tradeIn; // 2. Calculate Residual Value var residualValue = negotiatedPrice * (residualPercent / 100); // 3. Calculate Monthly Depreciation var monthlyDepreciation = (adjCapCost – residualValue) / term; if (monthlyDepreciation < 0) monthlyDepreciation = 0; // 4. Calculate Monthly Finance (Rent) Charge var monthlyFinance = (adjCapCost + residualValue) * moneyFactor; // 5. Base Monthly Payment var basePayment = monthlyDepreciation + monthlyFinance; // 6. Tax var monthlyTax = basePayment * (taxRate / 100); // 7. Total Monthly Payment var totalMonthlyPayment = basePayment + monthlyTax; // Display Results document.getElementById('lease-results').style.display = 'block'; document.getElementById('monthlyPayment').innerText = '$' + totalMonthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resDepreciation').innerText = '$' + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resFinance').innerText = '$' + monthlyFinance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTax').innerText = '$' + monthlyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resAdjCap').innerText = '$' + adjCapCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resValue').innerText = '$' + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); }

Understanding Your Car Lease Calculation

Leasing a vehicle is often more complex than a traditional loan because you aren't paying for the entire value of the car. Instead, you are paying for the depreciation of the vehicle over a set period of time, plus finance charges and taxes.

Key Leasing Terms Explained

• Negotiated Price (Gross Cap Cost): This is the final price of the vehicle after negotiations. It should be lower than the MSRP.
• Adjusted Capitalized Cost: The negotiated price minus your down payment, trade-in, and any credits. This is the amount actually being financed.
• Residual Value: The estimated value of the car at the end of the lease. This is set by the leasing company and is usually expressed as a percentage of the MSRP. Higher residual values lead to lower monthly payments.
• Money Factor: This is the interest rate for the lease. To find the equivalent APR, multiply the money factor by 2400. (e.g., 0.00125 x 2400 = 3% APR).
• Rent Charge: The finance fee paid to the leasing company for borrowing their asset.

Example Calculation Scenario

Let's look at a realistic example for a modern sedan:

Vehicle Price: $40,000

Down Payment: $4,000

Term: 36 Months

Residual (55%): $22,000

Money Factor: 0.0015 (3.6% APR)

Result: Approx. $482.22/month + tax

Tips for a Better Lease Deal

1. Negotiate the Price First: Don't tell the dealer you want to lease until you've settled on a purchase price. A lower "Cap Cost" directly lowers your monthly payment.
2. Check the Money Factor: Some dealers "mark up" the money factor provided by the manufacturer's bank. Always ask for the "base rate."
3. Limit Down Payments: In a lease, a large down payment (Cap Cost Reduction) is risky. If the car is totaled or stolen early in the lease, you often won't get that down payment back from insurance.
4. Watch the Mileage: Know your driving habits. Over-mileage fees (usually $0.15 to $0.25 per mile) can be expensive at lease-end.