Auto Lease Calculator – Loan calculator

Auto Lease Payment Calculator

Vehicle MSRP ($):

Negotiated Selling Price ($):

Capitalized Cost Reduction ($):

Residual Value (% of MSRP):

Lease Term (Months):

Money Factor (e.g., 0.00050):

Sales Tax Rate (%):

Acquisition Fee ($):

Documentation Fee ($):

Other Upfront Fees ($):

function calculateLeasePayment() { var vehicleMSRP = parseFloat(document.getElementById('vehicleMSRP').value); var negotiatedSellingPrice = parseFloat(document.getElementById('negotiatedSellingPrice').value); var capitalizedCostReduction = parseFloat(document.getElementById('capitalizedCostReduction').value); var residualValuePercentage = parseFloat(document.getElementById('residualValuePercentage').value); var leaseTermMonths = parseFloat(document.getElementById('leaseTermMonths').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var salesTaxRate = parseFloat(document.getElementById('salesTaxRate').value); var acquisitionFee = parseFloat(document.getElementById('acquisitionFee').value); var documentationFee = parseFloat(document.getElementById('documentationFee').value); var otherUpfrontFees = parseFloat(document.getElementById('otherUpfrontFees').value); if (isNaN(vehicleMSRP) || isNaN(negotiatedSellingPrice) || isNaN(capitalizedCostReduction) || isNaN(residualValuePercentage) || isNaN(leaseTermMonths) || isNaN(moneyFactor) || isNaN(salesTaxRate) || isNaN(acquisitionFee) || isNaN(documentationFee) || isNaN(otherUpfrontFees) || vehicleMSRP <= 0 || negotiatedSellingPrice <= 0 || leaseTermMonths <= 0) { document.getElementById('leaseResult').innerHTML = "Please enter valid positive numbers for all fields."; return; } // 1. Calculate Residual Value in dollars var residualValueDollars = vehicleMSRP * (residualValuePercentage / 100); // 2. Calculate Adjusted Capitalized Cost // This is the total amount being financed in the lease. // It includes the negotiated price, reduced by any capitalized cost reduction, // and increased by fees rolled into the lease. var adjustedCapitalizedCost = negotiatedSellingPrice – capitalizedCostReduction + acquisitionFee + documentationFee + otherUpfrontFees; // Ensure adjusted capitalized cost is not less than residual value if (adjustedCapitalizedCost < residualValueDollars) { document.getElementById('leaseResult').innerHTML = "Error: Adjusted Capitalized Cost cannot be less than the Residual Value. Please check your inputs."; return; } // 3. Calculate Depreciation Amount var depreciationAmount = adjustedCapitalizedCost – residualValueDollars; // 4. Calculate Monthly Depreciation var monthlyDepreciation = depreciationAmount / leaseTermMonths; // 5. Calculate Monthly Finance Charge // This is the interest-like charge on the lease. var monthlyFinanceCharge = (adjustedCapitalizedCost + residualValueDollars) * moneyFactor; // 6. Calculate Base Monthly Payment (before tax) var baseMonthlyPayment = monthlyDepreciation + monthlyFinanceCharge; // 7. Calculate Monthly Sales Tax var monthlySalesTax = baseMonthlyPayment * (salesTaxRate / 100); // 8. Calculate Total Monthly Payment var totalMonthlyPayment = baseMonthlyPayment + monthlySalesTax; document.getElementById('leaseResult').innerHTML = "

Your Estimated Monthly Lease Payment:

" + "$" + totalMonthlyPayment.toFixed(2) + "" + "(Includes $" + monthlySalesTax.toFixed(2) + " in sales tax)"; } .calculator-container { background-color: #f9f9f9; border: 1px solid #ddd; padding: 20px; border-radius: 8px; max-width: 500px; margin: 20px auto; font-family: Arial, sans-serif; } .calculator-container h2 { text-align: center; color: #333; margin-bottom: 20px; } .calc-input-group { margin-bottom: 15px; display: flex; flex-direction: column; } .calc-input-group label { margin-bottom: 5px; font-weight: bold; color: #555; } .calc-input-group input[type="number"] { padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; width: 100%; box-sizing: border-box; } .calculator-container button { background-color: #007bff; color: white; padding: 12px 20px; border: none; border-radius: 4px; cursor: pointer; font-size: 18px; width: 100%; box-sizing: border-box; transition: background-color 0.3s ease; } .calculator-container button:hover { background-color: #0056b3; } .calc-result { margin-top: 20px; padding: 15px; border: 1px solid #28a745; background-color: #e2f0d9; border-radius: 4px; text-align: center; color: #155724; } .calc-result h3 { color: #155724; margin-top: 0; margin-bottom: 10px; } .calc-result p { margin: 5px 0; font-size: 1.1em; } .calc-result strong { font-size: 1.5em; color: #0a3d0a; }

Understanding Your Auto Lease: A Comprehensive Guide

Leasing a car can be an attractive option for many drivers, offering lower monthly payments compared to purchasing, the ability to drive a new vehicle more frequently, and often less hassle with maintenance and trade-ins. However, understanding how an auto lease works and what factors influence your monthly payment is crucial. Our Auto Lease Payment Calculator helps demystify the process by breaking down the key components.

What is an Auto Lease?

An auto lease is essentially a long-term rental agreement. Instead of buying the car, you pay for the depreciation of the vehicle during the time you use it, plus a finance charge (known as the money factor) and various fees. At the end of the lease term, you typically return the car to the dealership or have the option to purchase it for its residual value.

Key Components of Your Lease Payment Explained:

Vehicle MSRP (Manufacturer's Suggested Retail Price)

This is the sticker price of the car as set by the manufacturer. While you might negotiate a lower selling price, the MSRP is often used as the basis for calculating the car's residual value at the end of the lease.

Negotiated Selling Price (Capitalized Cost)

This is the price you and the dealer agree upon for the vehicle. It's the starting point for your lease calculation, similar to the principal amount in a loan. A lower negotiated selling price directly reduces your monthly lease payments.

Capitalized Cost Reduction

This is an upfront payment you make at the beginning of the lease to reduce the total amount being financed. It functions similarly to a down payment on a purchase, lowering your monthly payments. However, unlike a down payment, if the car is totaled early in the lease, you typically won't get this money back.

Residual Value Percentage

The residual value is the estimated value of the vehicle at the end of the lease term, expressed as a percentage of the MSRP. This is a critical factor because your monthly payment largely covers the difference between the adjusted capitalized cost and the residual value. A higher residual value means you're paying for less depreciation, resulting in lower monthly payments.

Lease Term (Months)

This is the duration of your lease agreement, typically ranging from 24 to 48 months. A longer lease term can result in lower monthly payments because the depreciation is spread out over more months, but you'll pay more in finance charges over time.

Money Factor

The money factor is the lease equivalent of an interest rate. It represents the finance charge you pay for the privilege of leasing the vehicle. It's usually expressed as a very small decimal (e.g., 0.00070). To convert a money factor to an approximate annual percentage rate (APR), multiply it by 2400 (0.00070 * 2400 = 1.68% APR).

Sales Tax Rate

Sales tax on a lease is typically applied to your monthly payment in most states, rather than on the full vehicle price upfront. The calculator applies this percentage to your base monthly payment.

Acquisition Fee

This is a fee charged by the leasing company (the bank or financial institution that owns the car during the lease) for setting up the lease. It covers administrative costs and is often rolled into the capitalized cost.

Documentation Fee

Also known as a "doc fee," this is a charge from the dealership for processing paperwork, handling title and registration, and other administrative tasks. It can vary significantly by state and dealership.

Other Upfront Fees

This category includes various other costs that might be due at lease signing, such as license plate fees, registration fees, and sometimes a first month's payment. These can either be paid upfront or rolled into the capitalized cost, increasing your monthly payment.

How the Calculator Works:

Our calculator uses the standard lease payment formula, which consists of two main parts:

Depreciation Portion: This covers the loss in value of the car during your lease. It's calculated as (Adjusted Capitalized Cost – Residual Value) / Lease Term.
Finance Charge Portion: This is the cost of borrowing the money for the lease. It's calculated as (Adjusted Capitalized Cost + Residual Value) * Money Factor.

These two portions are added together to get your base monthly payment, to which the applicable sales tax is then added to determine your total monthly lease payment.

Example Calculation:

Let's use the default values in the calculator to illustrate:

Vehicle MSRP: $35,000
Negotiated Selling Price: $33,000
Capitalized Cost Reduction: $2,000
Residual Value Percentage: 55%
Lease Term: 36 Months
Money Factor: 0.00070
Sales Tax Rate: 7%
Acquisition Fee: $595
Documentation Fee: $150
Other Upfront Fees: $0

Residual Value in Dollars: $35,000 * 0.55 = $19,250
Adjusted Capitalized Cost: $33,000 (Selling Price) – $2,000 (Cap Cost Reduction) + $595 (Acquisition Fee) + $150 (Doc Fee) + $0 (Other Fees) = $31,745
Depreciation Amount: $31,745 (Adjusted Cap Cost) – $19,250 (Residual Value) = $12,495
Monthly Depreciation: $12,495 / 36 Months = $347.08
Monthly Finance Charge: ($31,745 + $19,250) * 0.00070 = $51,000 * 0.00070 = $35.70
Base Monthly Payment: $347.08 (Depreciation) + $35.70 (Finance Charge) = $382.78
Monthly Sales Tax: $382.78 * 0.07 = $26.79
Total Monthly Payment: $382.78 + $26.79 = $409.57

By understanding these components, you can better negotiate your lease terms and make an informed decision about your next vehicle.