Use this calculator to estimate your monthly lease payments for a new or used vehicle. Understanding the components of a lease can help you make an informed decision.
function calculateLease() {
var msrp = parseFloat(document.getElementById('msrp').value);
var negotiatedVehiclePrice = parseFloat(document.getElementById('negotiatedVehiclePrice').value);
var residualValuePercentage = parseFloat(document.getElementById('residualValuePercentage').value);
var leaseTermMonths = parseFloat(document.getElementById('leaseTermMonths').value);
var moneyFactor = parseFloat(document.getElementById('moneyFactor').value);
var upfrontCapitalizedCostReduction = parseFloat(document.getElementById('upfrontCapitalizedCostReduction').value);
var salesTaxRate = parseFloat(document.getElementById('salesTaxRate').value);
var resultDiv = document.getElementById('leaseResult');
resultDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(msrp) || msrp <= 0) {
resultDiv.innerHTML = 'Please enter a valid MSRP.';
return;
}
if (isNaN(negotiatedVehiclePrice) || negotiatedVehiclePrice msrp) {
resultDiv.innerHTML = 'Negotiated Vehicle Price cannot be greater than MSRP.';
return;
}
if (isNaN(residualValuePercentage) || residualValuePercentage 100) {
resultDiv.innerHTML = 'Please enter a valid Residual Value Percentage (0-100).';
return;
}
if (isNaN(leaseTermMonths) || leaseTermMonths <= 0 || !Number.isInteger(leaseTermMonths)) {
resultDiv.innerHTML = 'Please enter a valid Lease Term in months (a positive integer).';
return;
}
if (isNaN(moneyFactor) || moneyFactor < 0) {
resultDiv.innerHTML = 'Please enter a valid Money Factor (non-negative).';
return;
}
if (isNaN(upfrontCapitalizedCostReduction) || upfrontCapitalizedCostReduction = negotiatedVehiclePrice) {
resultDiv.innerHTML = 'Upfront Capitalized Cost Reduction must be less than the Negotiated Vehicle Price.';
return;
}
if (isNaN(salesTaxRate) || salesTaxRate < 0) {
resultDiv.innerHTML = 'Please enter a valid Sales Tax Rate (non-negative).';
return;
}
// Convert percentages to decimals
var residualDecimal = residualValuePercentage / 100;
var salesTaxDecimal = salesTaxRate / 100;
// 1. Calculate Adjusted Capitalized Cost
var adjustedCapitalizedCost = negotiatedVehiclePrice – upfrontCapitalizedCostReduction;
// 2. Calculate Residual Value in dollars
var residualValueAmount = msrp * residualDecimal;
// 3. Calculate Depreciation Portion
var depreciationPortion = (adjustedCapitalizedCost – residualValueAmount) / leaseTermMonths;
// 4. Calculate Finance Charge Portion
var financeChargePortion = (adjustedCapitalizedCost + residualValueAmount) * moneyFactor;
// 5. Calculate Base Monthly Payment (before tax)
var baseMonthlyPayment = depreciationPortion + financeChargePortion;
// 6. Calculate Sales Tax Amount
var salesTaxAmount = baseMonthlyPayment * salesTaxDecimal;
// 7. Calculate Total Monthly Payment
var totalMonthlyPayment = baseMonthlyPayment + salesTaxAmount;
resultDiv.innerHTML = '
' +
'Breakdown:' +
'
';
}
.auto-car-lease-calculator {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
background-color: #f9f9f9;
padding: 25px;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1);
max-width: 600px;
margin: 30px auto;
border: 1px solid #e0e0e0;
}
.auto-car-lease-calculator h2 {
color: #2c3e50;
text-align: center;
margin-bottom: 20px;
font-size: 1.8em;
}
.auto-car-lease-calculator p {
color: #555;
line-height: 1.6;
margin-bottom: 15px;
text-align: justify;
}
.calculator-form label {
display: block;
margin-bottom: 8px;
color: #34495e;
font-weight: bold;
font-size: 0.95em;
}
.calculator-form input[type="number"] {
width: calc(100% – 22px);
padding: 12px;
margin-bottom: 15px;
border: 1px solid #ccc;
border-radius: 6px;
font-size: 1em;
box-sizing: border-box;
transition: border-color 0.3s ease;
}
.calculator-form input[type="number"]:focus {
border-color: #007bff;
outline: none;
box-shadow: 0 0 5px rgba(0, 123, 255, 0.2);
}
.calculator-form button {
background-color: #007bff;
color: white;
padding: 12px 25px;
border: none;
border-radius: 6px;
cursor: pointer;
font-size: 1.1em;
font-weight: bold;
display: block;
width: 100%;
margin-top: 20px;
transition: background-color 0.3s ease, transform 0.2s ease;
}
.calculator-form button:hover {
background-color: #0056b3;
transform: translateY(-2px);
}
#leaseResult {
margin-top: 25px;
padding: 15px;
background-color: #e9f7ef;
border: 1px solid #d4edda;
border-radius: 8px;
color: #155724;
font-size: 1.1em;
line-height: 1.6;
}
#leaseResult h3 {
color: #0f5132;
margin-top: 0;
font-size: 1.4em;
margin-bottom: 10px;
}
#leaseResult ul {
list-style-type: none;
padding: 0;
margin-top: 10px;
}
#leaseResult ul li {
margin-bottom: 5px;
color: #212529;
}
Understanding Your Auto Lease Payment
Leasing a car can be an attractive option for many drivers, offering lower monthly payments compared to purchasing, and the flexibility to drive a new vehicle more frequently. However, understanding how your monthly lease payment is calculated is crucial to ensure you're getting a good deal.
Key Components of a Lease Payment:
- Manufacturer's Suggested Retail Price (MSRP): This is the sticker price of the vehicle. While you might negotiate a lower "Negotiated Vehicle Price" (also known as the Capitalized Cost), the MSRP is often used to determine the Residual Value.
- Negotiated Vehicle Price (Capitalized Cost): This is the agreed-upon price of the vehicle that the lease is based on. It's similar to the purchase price if you were buying the car. A lower negotiated price directly reduces your monthly payments.
- Residual Value Percentage: This is the estimated value of the car at the end of the lease term, expressed as a percentage of the MSRP. The higher the residual value, the less depreciation you pay for, resulting in lower monthly payments.
- Lease Term (Months): This is the duration of your lease agreement, typically 24, 36, or 48 months. A longer lease term can lower your monthly payment but means you'll pay more in finance charges over time.
- Money Factor: This is the leasing company's equivalent of an interest rate. It's a small decimal number (e.g., 0.00125). To convert it to an approximate annual interest rate, multiply it by 2400 (0.00125 * 2400 = 3%). A lower money factor means lower finance charges.
- Upfront Capitalized Cost Reduction: This is an upfront payment you make at the beginning of the lease to reduce the Capitalized Cost. It's similar to a down payment on a purchase and will lower your monthly payments. However, if the car is totaled, you might lose this money.
- Sales Tax Rate: Sales tax is typically applied to your monthly lease payment in most states, rather than the full vehicle price upfront.
How the Calculator Works:
Our calculator breaks down your monthly lease payment into two main parts:
- Depreciation Portion: This covers the difference between the Adjusted Capitalized Cost (Negotiated Vehicle Price minus any Upfront Capitalized Cost Reduction) and the Residual Value, spread out over the lease term. This is the cost of using the car's value.
- Finance Charge Portion: This is the cost of borrowing money for the lease, calculated based on the sum of the Adjusted Capitalized Cost and the Residual Value, multiplied by the Money Factor.
These two portions are added together to get your base monthly payment, to which the applicable sales tax is then added to arrive at your total estimated monthly lease payment.
Tips for a Better Lease Deal:
- Negotiate the Vehicle Price: Just like buying, you can negotiate the Capitalized Cost.
- Understand the Money Factor: Ask the dealer for the money factor and compare it to current market rates.
- Check the Residual Value: A higher residual value is better for you.
- Consider Lease Term: Shorter terms mean higher payments but less time paying finance charges.
- Be Wary of Excessive Upfront Payments: While they lower monthly payments, they can be lost if the car is totaled early in the lease.
Always read your lease agreement carefully and ask questions before signing.