Loan Payback Calculator

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Car Lease Payment Calculator

Note: APR / 2400 = Money Factor
24 Months 36 Months 48 Months

Estimated Monthly Payment

Depreciation Fee
Finance (Rent) Charge
function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').value); var residualPercent = parseFloat(document.getElementById('residualPercent').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var tradeIn = parseFloat(document.getElementById('tradeIn').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var term = parseInt(document.getElementById('leaseTerm').value); if (isNaN(msrp) || isNaN(residualPercent) || isNaN(moneyFactor) || msrp <= 0) { alert("Please enter valid numbers for price, residual, and money factor."); return; } // 1. Calculate Residual Value var residualValue = msrp * (residualPercent / 100); // 2. Calculate Net Capitalized Cost var netCapCost = msrp – downPayment – tradeIn; // 3. Calculate Depreciation Fee // (Net Cap Cost – Residual Value) / Term var monthlyDepreciation = (netCapCost – residualValue) / term; // 4. Calculate Rent Charge (Finance Fee) // (Net Cap Cost + Residual Value) * Money Factor var rentCharge = (netCapCost + residualValue) * moneyFactor; // 5. Total Monthly Payment (Before Tax) var totalMonthly = monthlyDepreciation + rentCharge; if (totalMonthly < 0) { alert("The calculation resulted in a negative value. Check your trade-in and down payment amounts."); return; } document.getElementById('monthlyPaymentOutput').innerHTML = "$" + totalMonthly.toFixed(2); document.getElementById('depreciationPart').innerHTML = "$" + monthlyDepreciation.toFixed(2); document.getElementById('financePart').innerHTML = "$" + rentCharge.toFixed(2); document.getElementById('leaseResult').style.display = 'block'; }

Understanding Your Car Lease Math

Leasing a car is often more complex than a standard purchase because you aren't paying for the entire vehicle—you are only paying for the depreciation that occurs while you drive it. This calculator helps you break down the three components of a lease payment.

The Key Lease Components

  • Gross Capitalized Cost: This is the negotiated price of the vehicle. Just like buying a car, you should always negotiate the MSRP down before discussing monthly payments.
  • 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 the car loses less value during your term.
  • 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 0.00125 money factor equals a 3% APR.
  • Capitalized Cost Reduction: This includes your down payment and any trade-in equity. It reduces the amount being financed.

Calculation Example

Suppose you lease a $40,000 SUV with a 60% residual for 36 months and a 0.0015 money factor ($0 down for simplicity):

  1. Residual Value: $40,000 × 0.60 = $24,000
  2. Monthly Depreciation: ($40,000 – $24,000) / 36 = $444.44
  3. Monthly Rent Charge: ($40,000 + $24,000) × 0.0015 = $96.00
  4. Total Payment: $444.44 + $96.00 = $540.44 (plus local taxes)

3 Tips to Lower Your Lease Payment

1. Negotiate the Price: Most people don't realize you can negotiate the sales price of a lease just like a purchase. A lower "Cap Cost" directly lowers the depreciation part of your payment.

2. Look for High Residuals: Manufacturers often "subsidize" leases by inflating the residual value, making the car cheaper to lease than its competitors.

3. Avoid Large Down Payments: In a lease, if the car is totaled or stolen shortly after you leave the lot, your down payment is often lost forever. It is generally safer to put as little money down as possible ("Sign and Drive").

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