Mortgage Rates Calculator Compare

by

Car Lease Payment Calculator

Estimate your monthly lease payments including depreciation and rent charges.

Estimated Monthly Payment:
$0.00
Depreciation Portion: $0.00
Finance (Rent Charge): $0.00
Residual Value: $0.00
Money Factor: 0.0000

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 finance fee known as the rent charge.

Key Lease Components

  • Capitalized Cost (Cap Cost): This is the "negotiated price" of the vehicle. To find the Adjusted Cap Cost, we subtract your down payment and trade-in value from the MSRP.
  • Residual Value: This is what the leasing company predicts the car will be worth at the end of your lease. A higher residual value usually results in a lower monthly payment because you are paying for less depreciation.
  • Money Factor: This is the lease version of an interest rate. You can convert APR to a Money Factor by dividing by 2400. For example, a 4.8% APR is a 0.0020 Money Factor.

Example Calculation

"Suppose you lease a $40,000 SUV for 36 months. The residual value is 58% ($23,200). With a $3,000 down payment and a 4.0% APR, your monthly depreciation would be $383.33 and your rent charge would be $100.33, resulting in a total monthly payment of $483.66 (excluding taxes)."

How the Math Works

The formula for a lease payment is: (Depreciation + Rent Charge).

Depreciation = (Adjusted Cap Cost – Residual Value) / Lease Term

Rent Charge = (Adjusted Cap Cost + Residual Value) × Money Factor

function calculateLeasePayment() { var msrp = parseFloat(document.getElementById('msrp').value); var down = parseFloat(document.getElementById('downPayment').value) || 0; var trade = parseFloat(document.getElementById('tradeIn').value) || 0; var apr = parseFloat(document.getElementById('interestRate').value); var term = parseInt(document.getElementById('leaseTerm').value); var resPct = parseFloat(document.getElementById('residualPercent').value); var displayDiv = document.getElementById('leaseResult'); if (isNaN(msrp) || isNaN(apr) || isNaN(term) || isNaN(resPct) || msrp <= 0 || term <= 0) { alert("Please enter valid positive numbers for all required fields."); return; } // 1. Calculate Adjusted Capitalized Cost var adjCapCost = msrp – down – trade; // 2. Calculate Residual Value var residualValue = msrp * (resPct / 100); // 3. Calculate Money Factor (APR / 2400) var moneyFactor = apr / 2400; // 4. Monthly Depreciation var depreciationPortion = (adjCapCost – residualValue) / term; // Safety check if residual is higher than cap cost if (depreciationPortion < 0) depreciationPortion = 0; // 5. Monthly Rent Charge (Interest) var rentCharge = (adjCapCost + residualValue) * moneyFactor; // 6. Total Payment var totalMonthly = depreciationPortion + rentCharge; // Update UI document.getElementById('monthlyTotal').innerHTML = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationPart').innerHTML = "$" + depreciationPortion.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('rentPart').innerHTML = "$" + rentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resVal').innerHTML = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mFactor').innerHTML = moneyFactor.toFixed(5); displayDiv.style.display = 'block'; displayDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

Leave a Comment