Ovo Mortgage Calculator

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Car Lease Calculator

24 Months 36 Months 48 Months 60 Months
(APR / 2400)

Estimated Monthly Payment

$0.00
Depreciation Fee: $0.00
Rent Charge (Interest): $0.00
Residual Value: $0.00
Total Cost of Lease: $0.00
function calculateLease() { var price = parseFloat(document.getElementById('carPrice').value); var down = parseFloat(document.getElementById('downPayment').value); var trade = parseFloat(document.getElementById('tradeIn').value); var term = parseFloat(document.getElementById('leaseTerm').value); var mf = parseFloat(document.getElementById('moneyFactor').value); var resPercent = parseFloat(document.getElementById('residualValue').value); if (isNaN(price) || isNaN(down) || isNaN(mf) || isNaN(resPercent)) { alert("Please enter valid numbers in all fields."); return; } // 1. Calculate Adjusted Capitalized Cost var adjCapCost = price – down – trade; // 2. Calculate Residual Value var residualAmount = price * (resPercent / 100); // 3. Monthly Depreciation Fee // (Adjusted Cap Cost – Residual Value) / Term var depreciationFee = (adjCapCost – residualAmount) / term; // 4. Monthly Rent Charge // (Adjusted Cap Cost + Residual Value) × Money Factor var rentCharge = (adjCapCost + residualAmount) * mf; // 5. Total Monthly Payment var monthlyPayment = depreciationFee + rentCharge; var totalCost = (monthlyPayment * term) + down + trade; // Display Results document.getElementById('leaseResults').style.display = 'block'; document.getElementById('monthlyTotal').innerText = '$' + monthlyPayment.toFixed(2); document.getElementById('depreciationFee').innerText = '$' + depreciationFee.toFixed(2); document.getElementById('rentCharge').innerText = '$' + rentCharge.toFixed(2); document.getElementById('finalResidual').innerText = '$' + residualAmount.toFixed(2); document.getElementById('totalLeaseCost').innerText = '$' + totalCost.toFixed(2); }

How to Use the Car Lease Calculator

Navigating car lease agreements can be confusing. Our car lease calculator helps you break down the monthly costs so you can negotiate with confidence at the dealership. By understanding how the "Money Factor" and "Residual Value" impact your payment, you can save thousands over the life of the lease.

Understanding the Key Terms

  • Gross Capitalized Cost: This is the agreed-upon price of the vehicle, similar to the purchase price.
  • Money Factor: This represents the interest rate on the lease. To find the equivalent APR, multiply the money factor by 2,400. (e.g., 0.0025 x 2400 = 6% APR).
  • Residual Value: The estimated value of the car at the end of the lease. A higher residual value usually results in a lower monthly payment because you are financing less depreciation.
  • Trade-in Allowance: The amount a dealer gives you for your current car, which acts as a credit toward the new lease.

The Math Behind the Lease

A car lease payment consists of two primary components: depreciation and the rent charge.

  1. Depreciation: You pay for the value the car loses while you drive it. If a $40,000 car is worth $24,000 after 3 years, you pay for that $16,000 difference.
  2. Rent Charge: This is the fee for using the bank's money. It is calculated by adding the Cap Cost and Residual Value and multiplying it by the Money Factor.

Example Calculation

Scenario: You want to lease a SUV priced at $45,000 for 36 months.

  • Down Payment: $3,000
  • Residual Value: 60% ($27,000)
  • Money Factor: 0.0020 (4.8% APR)

Your adjusted capitalized cost is $42,000 ($45,000 – $3,000). The monthly depreciation would be ($42,000 – $27,000) / 36 = $416.67. The rent charge would be ($42,000 + $27,000) * 0.0020 = $138.00. Your total monthly payment would be $554.67 (plus taxes).

Tips for a Better Lease Deal

To get the lowest possible payment, focus on these three areas:

  • Negotiate the Sale Price: Don't just accept the MSRP. The lower the capitalized cost, the lower your depreciation fee.
  • Check the Money Factor: Some dealers mark up the interest rate. Always ask what the "buy rate" is from the manufacturer.
  • Mileage Limits: Be realistic about your driving habits. Exceeding your mileage limit can lead to heavy fees (often $0.20 to $0.30 per mile) at the end of the lease.

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