Estimate your monthly lease payments including depreciation, rent charges, and taxes.
Gross Capitalized Cost:
Residual Value:
Monthly Depreciation:
Monthly Rent Charge:
Total Monthly Payment:
How a Car Lease is Calculated
Leasing a vehicle is often more complex than a standard car loan. Instead of paying for the entire value of the car, you are essentially paying for the depreciation of the vehicle during the time you drive it, plus interest (known as the money factor) and taxes.
Key Terms You Need to Know
MSRP: The Manufacturer's Suggested Retail Price. This is the starting point for calculating the residual value.
Negotiated Price: Also called the Capitalized Cost. This is the actual price you agree to pay for the vehicle. Lowering this is the best way to lower your payment.
Residual Value: The estimated value of the car at the end of the lease. High residual values lead to lower monthly payments because the car depreciates less.
Money Factor: The interest rate of the lease. To convert this to a familiar APR, multiply the money factor by 2400. (e.g., 0.00125 * 2400 = 3% APR).
To secure the lowest possible monthly payment, focus on three main areas: negotiating the purchase price (Capitalized Cost), looking for vehicles with high residual values (usually luxury brands or popular SUVs), and ensuring your credit score is high enough to qualify for the "buy rate" or lowest available money factor.
function calculateLease() {
var msrp = parseFloat(document.getElementById("msrp").value);
var salesPrice = parseFloat(document.getElementById("salesPrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value) || 0;
var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0;
var residualPercent = parseFloat(document.getElementById("residualPercent").value);
var leaseTerm = parseFloat(document.getElementById("leaseTerm").value);
var moneyFactor = parseFloat(document.getElementById("moneyFactor").value);
var taxRate = parseFloat(document.getElementById("taxRate").value) || 0;
if (isNaN(msrp) || isNaN(salesPrice) || isNaN(residualPercent) || isNaN(leaseTerm) || isNaN(moneyFactor)) {
alert("Please fill in all required fields with valid numbers.");
return;
}
// 1. Calculate Gross Capitalized Cost (Net)
var netCapCost = salesPrice – downPayment – tradeIn;
// 2. Calculate Residual Value
var residualValue = msrp * (residualPercent / 100);
// 3. Monthly Depreciation
var monthlyDepreciation = (netCapCost – residualValue) / leaseTerm;
// 4. Monthly Rent Charge (Interest)
// Formula: (Net Cap Cost + Residual Value) * Money Factor
var monthlyRent = (netCapCost + residualValue) * moneyFactor;
// 5. Subtotal and Tax
var basePayment = monthlyDepreciation + monthlyRent;
var totalMonthly = basePayment * (1 + (taxRate / 100));
// Display results
document.getElementById("resGrossCap").innerText = "$" + netCapCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resResidual").innerText = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resDepreciation").innerText = "$" + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resRent").innerText = "$" + monthlyRent.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resTotal").innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("results").style.display = "block";
}