Estimate your monthly lease payment based on MSRP, residual value, and money factor.
Estimated Monthly Payment
$0.00
Depreciation
$0.00
Rent Charge
$0.00
How to Calculate Your Car Lease Payment
Leasing a car is often more complex than buying because the payment isn't just based on the total price. Instead, you are paying for the vehicle's depreciation during the time you drive it, plus interest (known as the money factor).
Key Terms Used in Car Leasing
MSRP: The Manufacturer's Suggested Retail Price. This is the starting point for negotiations.
Capitalized Cost Reductions: Any amount that reduces the price you are leasing, such as your down payment, trade-in, or rebates.
Residual Value: The estimated value of the car at the end of the lease term. A higher residual value usually means lower monthly payments.
Money Factor: This is essentially the interest rate on a lease. To convert APR to Money Factor, divide the APR by 2400.
The Leasing Formula
The monthly payment consists of two primary parts:
Dealerships often present a "monthly payment" without explaining how they reached it. By using this calculator, you can verify if the dealer is using a fair Money Factor and see exactly how your down payment affects your long-term costs. It empowers you to negotiate the Gross Capitalized Cost (the sales price) rather than just focusing on the monthly payment.
function calculateLease() {
var msrp = parseFloat(document.getElementById('clc_msrp').value);
var down = parseFloat(document.getElementById('clc_down').value) || 0;
var trade = parseFloat(document.getElementById('clc_trade').value) || 0;
var term = parseFloat(document.getElementById('clc_term').value);
var resPct = parseFloat(document.getElementById('clc_residual_pct').value);
var apr = parseFloat(document.getElementById('clc_apr').value);
if (!msrp || !term || !resPct || term <= 0) {
alert("Please enter valid numbers for price, term, and residual percentage.");
return;
}
// 1. Calculate Residual Value in Dollars
var residualValue = msrp * (resPct / 100);
// 2. Calculate Adjusted Capitalized Cost
var adjustedCapCost = msrp – down – trade;
// 3. Calculate Depreciation Fee
var depreciationFee = (adjustedCapCost – residualValue) / term;
// 4. Calculate Money Factor (APR / 2400)
var moneyFactor = apr / 2400;
// 5. Calculate Rent Charge (Finance Fee)
// Note: Standard lease formula adds Adj Cap Cost and Residual Value
var rentCharge = (adjustedCapCost + residualValue) * moneyFactor;
// 6. Total Monthly Payment
var totalPayment = depreciationFee + rentCharge;
// Handle case where residual value is higher than cap cost (rare but possible in math)
if (depreciationFee < 0) {
depreciationFee = 0;
totalPayment = rentCharge;
}
// Display Results
document.getElementById('clc_result_box').style.display = 'block';
document.getElementById('clc_total_payment').innerHTML = '$' + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('clc_dep_fee').innerHTML = '$' + depreciationFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('clc_rent_fee').innerHTML = '$' + rentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
}