Collector Car Loan Calculator

Car Lease Payment Calculator

Calculate your monthly lease payment, depreciation, and rent charges.

APR / 2400 = Money Factor

Lease Estimate Summary

Monthly Base Payment $0.00
Total with Tax $0.00
Residual Amount $0.00

Depreciation Fee: /mo

Rent Charge (Interest): /mo

Total Lease Cost:

Understanding the Car Lease Math

Calculating a car lease is more complex than a standard car loan. Unlike a loan where you pay for the entire value of the vehicle plus interest, a lease essentially pays for the depreciation of the vehicle during the time you drive it, plus a finance fee known as the "rent charge."

Key Components of a Lease Payment

  • Gross Capitalized Cost: This is the negotiated price of the car plus any added fees or taxes you choose to roll into the lease.
  • Capitalized Cost Reductions: This includes your down payment, trade-in value, and any manufacturer rebates that reduce the amount you are financing.
  • Residual Value: This is the predicted value of the car at the end of the lease term. Higher residual values lead to lower monthly payments because the car depreciates less.
  • Money Factor: This is the interest rate expressed as a decimal. To find the equivalent APR, multiply the money factor by 2,400.

How the Math Works (Step-by-Step)

1. Monthly Depreciation: (Adjusted Cap Cost – Residual Value) / Term in Months.

2. Monthly Rent Charge: (Adjusted Cap Cost + Residual Value) × Money Factor.

3. Monthly Base Payment: Depreciation + Rent Charge.

Example Scenario

If you lease a car with an MSRP of $40,000, a negotiated price of $38,000, a 36-month term, a 60% residual ($24,000), and a money factor of 0.0015:

  • Depreciation: ($38,000 – $24,000) / 36 = $388.89
  • Rent Charge: ($38,000 + $24,000) * 0.0015 = $93.00
  • Base Payment: $481.89
function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').value); var salesPrice = parseFloat(document.getElementById('salesPrice').value); var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeIn = parseFloat(document.getElementById('tradeIn').value) || 0; var term = parseFloat(document.getElementById('leaseTerm').value); var residualPct = parseFloat(document.getElementById('residualPct').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var taxRate = parseFloat(document.getElementById('taxRate').value) || 0; if (!msrp || !salesPrice || !term || !residualPct || !moneyFactor) { alert("Please fill in all required fields with valid numbers."); return; } // Calculations var netCapCost = salesPrice – (downPayment + tradeIn); var residualValue = msrp * (residualPct / 100); // Monthly Depreciation Fee var depreciationFee = (netCapCost – residualValue) / term; if (depreciationFee < 0) depreciationFee = 0; // Edge case: cap cost below residual // Monthly Rent Charge var rentCharge = (netCapCost + residualValue) * moneyFactor; // Base Payment var basePayment = depreciationFee + rentCharge; // Tax (Usually applied to the base payment monthly in most states) var monthlyTax = basePayment * (taxRate / 100); var totalMonthly = basePayment + monthlyTax; // Total Lease Cost (Payments * Term + Down Payment + Trade-in) var totalCost = (totalMonthly * term) + downPayment + tradeIn; // Update Display document.getElementById('resBase').innerText = "$" + basePayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotal').innerText = "$" + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resAmount').innerText = "$" + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resDeprec').innerText = "$" + depreciationFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resRent').innerText = "$" + rentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalCost').innerText = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResult').style.display = 'block'; }

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