Calculate your monthly lease payment, depreciation, and finance charges.
24 Months
36 Months
48 Months
60 Months
(APR / 2400)
Estimated Monthly Payment
$0.00
Gross Cap Cost: $0
Residual Value: $0
Depreciation Fee: $0
Finance Fee: $0
Base Payment: $0
Monthly Tax: $0
How Car Lease Payments are Calculated
Understanding car leasing math is crucial for getting a fair deal. Unlike a loan, where you pay off the total value of the car, a lease only charges you for the value the vehicle loses during your possession, plus interest and taxes.
The Three Main Components
Depreciation Fee: This is the most significant part. It is calculated as (Net Cap Cost - Residual Value) / Lease Term.
Finance Fee (Rent Charge): This is the interest you pay the leasing company. The formula is (Net Cap Cost + Residual Value) × Money Factor.
Sales Tax: Most states tax the monthly payment rather than the vehicle price.
Example Scenario
If you lease a car with an MSRP of $35,000 but negotiate the price down to $32,000, and put $3,000 down, your Net Capitalized Cost is $29,000. If the 36-month residual value is 60% ($21,000), you are essentially paying for $8,000 of depreciation over 3 years.
What is the Money Factor?
The Money Factor represents the interest rate. To convert a Money Factor to a standard APR, multiply it by 2400. For example, a money factor of 0.00125 is equivalent to 3% APR.
function calculateLease() {
var msrp = parseFloat(document.getElementById("msrp").value) || 0;
var negotiatedPrice = parseFloat(document.getElementById("negotiatedPrice").value) || 0;
var downPayment = parseFloat(document.getElementById("downPayment").value) || 0;
var tradeIn = parseFloat(document.getElementById("tradeIn").value) || 0;
var leaseTerm = parseFloat(document.getElementById("leaseTerm").value) || 1;
var residualPercent = parseFloat(document.getElementById("residualPercent").value) || 0;
var moneyFactor = parseFloat(document.getElementById("moneyFactor").value) || 0;
var salesTaxRate = parseFloat(document.getElementById("salesTax").value) || 0;
if (msrp <= 0 || negotiatedPrice <= 0) {
alert("Please enter a valid MSRP and Negotiated Price.");
return;
}
// 1. Net Capitalized Cost
var netCapCost = negotiatedPrice – downPayment – tradeIn;
// 2. Residual Value
var residualValue = msrp * (residualPercent / 100);
// 3. Depreciation Fee
var totalDepreciation = netCapCost – residualValue;
var monthlyDepreciation = totalDepreciation / leaseTerm;
// 4. Finance Fee (Rent Charge)
var monthlyFinance = (netCapCost + residualValue) * moneyFactor;
// 5. Base Monthly Payment
var basePayment = monthlyDepreciation + monthlyFinance;
// 6. Tax
var monthlyTax = basePayment * (salesTaxRate / 100);
// 7. Total Payment
var totalMonthly = basePayment + monthlyTax;
// Displaying results
document.getElementById("monthlyResult").innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resGrossCap").innerText = "$" + netCapCost.toLocaleString();
document.getElementById("resResidualValue").innerText = "$" + residualValue.toLocaleString();
document.getElementById("resDepreciation").innerText = "$" + monthlyDepreciation.toFixed(2);
document.getElementById("resFinance").innerText = "$" + monthlyFinance.toFixed(2);
document.getElementById("resBase").innerText = "$" + basePayment.toFixed(2);
document.getElementById("resTax").innerText = "$" + monthlyTax.toFixed(2);
document.getElementById("lease-results").style.display = "block";
}