Manufactured Home Mortgage Calculator

Car Lease Depreciation Calculator

The negotiated price of the vehicle plus fees.

The predicted value at the end of the lease.

function calculateDepreciation() { var capCost = parseFloat(document.getElementById('capCost').value); var residual = parseFloat(document.getElementById('residualValue').value); var term = parseFloat(document.getElementById('leaseTerm').value); var resultDiv = document.getElementById('results'); if (isNaN(capCost) || isNaN(residual) || isNaN(term) || term = capCost) { alert("Residual value cannot be greater than or equal to the Capitalized Cost."); return; } var totalDepreciation = capCost – residual; var monthlyDepreciation = totalDepreciation / term; document.getElementById('totalDepDisplay').innerText = '$' + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyDepDisplay').innerText = '$' + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); resultDiv.style.display = 'block'; }

How Car Lease Depreciation is Calculated

When you lease a car, you aren't paying for the entire value of the vehicle. Instead, you are paying for the portion of the car's value that you "use up" during the lease term. This is known as Depreciation.

The Depreciation Formula

(Gross Capitalized Cost – Residual Value) / Lease Term = Monthly Depreciation

Key Terms Explained

• Gross Capitalized Cost: This is the starting value of the lease. It includes the negotiated price of the car plus any added fees, service contracts, or prior lease balances.
• Residual Value: This is a fixed amount set by the leasing company (lessor). It represents the predicted wholesale value of the car at the very end of your lease. High residual values lead to lower monthly payments.
• Lease Term: The duration of your lease contract, typically expressed in months (e.g., 24, 36, or 48 months).

Realistic Example

Imagine you are leasing a luxury sedan with a negotiated price (Gross Cap Cost) of $45,000. The bank determines that after 36 months, the car will be worth $27,000 (Residual Value).

1. Total Depreciation: $45,000 – $27,000 = $18,000
2. Monthly Depreciation: $18,000 / 36 months = $500.00 per month

Remember, your total monthly lease payment will also include a "Rent Charge" (calculated using the Money Factor) and applicable sales tax.

Why This Matters for SEO and Savings

Understanding depreciation helps you identify "good" lease deals. Cars that hold their value well (high residual value) often have lower lease payments than cheaper cars that depreciate rapidly. Use this calculator to compare different vehicle models and lease offers to see which one costs you the least in actual value loss.