Car Leasing Calculator India

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Car Leasing Calculator India

Estimate your monthly car lease payments in India, including GST.

Ex-Showroom Price of Car (₹)

Lease Tenure (Months)

Estimated Residual Value (%)

Money Factor

Initial Down Payment (₹)

GST Rate (%)

function calculateLease() { var carPrice = parseFloat(document.getElementById('carPrice').value); var leaseTenure = parseInt(document.getElementById('leaseTenure').value); var residualValuePercent = parseFloat(document.getElementById('residualValuePercent').value); var moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var gstRate = parseFloat(document.getElementById('gstRate').value); var resultDiv = document.getElementById('result'); if (isNaN(carPrice) || carPrice <= 0 || isNaN(leaseTenure) || leaseTenure <= 0 || isNaN(residualValuePercent) || residualValuePercent = 100 || isNaN(moneyFactor) || moneyFactor <= 0 || isNaN(downPayment) || downPayment < 0 || isNaN(gstRate) || gstRate < 0) { resultDiv.innerHTML = 'Please enter valid numbers in all fields. Ensure Residual Value is between 1-99%.'; return; } // 1. Calculate Capitalized Cost (the net amount being financed) var capitalizedCost = carPrice – downPayment; // 2. Calculate Residual Value in Rupees var residualValueAmount = carPrice * (residualValuePercent / 100); // 3. Calculate Total Depreciation var depreciationAmount = capitalizedCost – residualValueAmount; if (depreciationAmount < 0) { resultDiv.innerHTML = 'Calculation error. The down payment cannot be greater than the car\'s total depreciation value. Please check your inputs.'; return; } // 4. Calculate Monthly Depreciation Payment var monthlyDepreciation = depreciationAmount / leaseTenure; // 5. Calculate Monthly Finance Charge (Rent Charge) var monthlyFinanceCharge = (capitalizedCost + residualValueAmount) * moneyFactor; // 6. Calculate Base Monthly Payment (before tax) var baseMonthlyPayment = monthlyDepreciation + monthlyFinanceCharge; // 7. Calculate Monthly GST var monthlyGst = baseMonthlyPayment * (gstRate / 100); // 8. Calculate Total Monthly Payment (including GST) var totalMonthlyPayment = baseMonthlyPayment + monthlyGst; // 9. Calculate Total Lease Cost var totalLeaseCost = (totalMonthlyPayment * leaseTenure) + downPayment; resultDiv.innerHTML = '

Your Estimated Lease Details

' + 'Base Monthly Payment (before GST): ₹ ' + baseMonthlyPayment.toFixed(2) + '' + 'Monthly GST (' + gstRate + '%): ₹ ' + monthlyGst.toFixed(2) + '' + 'Total Monthly Lease Payment: ₹ ' + totalMonthlyPayment.toFixed(2) + '' + '

' + 'Total Lease Cost over ' + leaseTenure + ' months: ₹ ' + totalLeaseCost.toFixed(2) + '' + 'Disclaimer: This is an estimate. Actual payments may vary based on the leasing company, insurance, registration, and other applicable charges.'; }

Understanding Car Leasing in India

Car leasing is an alternative to buying a car through a loan (EMI). Instead of owning the car, you pay a monthly fee to use it for a fixed period (the lease tenure). At the end of the tenure, you can typically return the car, extend the lease, or sometimes buy it at its predetermined residual value. This calculator helps you estimate the monthly payment for a car lease in India.

How to Use the Car Lease Calculator

To estimate your monthly lease payment, you need a few key pieces of information, which you can usually get from a car dealership or a leasing company:

Ex-Showroom Price of Car (₹): The retail price of the car before registration, insurance, and other charges.
Lease Tenure (Months): The duration of your lease agreement, commonly 24, 36, 48, or 60 months.
Estimated Residual Value (%): The car's projected worth at the end of the lease, expressed as a percentage of its ex-showroom price. A higher residual value results in lower monthly payments.
Money Factor: This is the financing charge on a lease, similar to an interest rate on a loan. It's a small decimal number (e.g., 0.00150). To convert an APR to a money factor, divide it by 2400. For example, a 3.6% APR is a 0.00150 money factor (3.6 / 2400).
Initial Down Payment (₹): An optional upfront payment that reduces the total amount being leased, thereby lowering your monthly payments.
GST Rate (%): The Goods and Services Tax applicable on the lease rental. This rate varies based on the car's segment, engine size, and classification. A rate of 28% is common for many cars, but it can be higher with additional cess.

Example Calculation Breakdown

Let's see how the calculation works for a car with the following details:

Ex-Showroom Price: ₹15,00,000
Lease Tenure: 36 months
Residual Value: 40% (which is ₹6,00,000)
Money Factor: 0.00150
Down Payment: ₹1,00,000
GST Rate: 28%

Capitalized Cost: This is the price minus the down payment. ₹15,00,000 – ₹1,00,000 = ₹14,00,000.
Depreciation: This is the value the car loses over the tenure. It's the Capitalized Cost minus the Residual Value. ₹14,00,000 – ₹6,00,000 = ₹8,00,000.
Monthly Depreciation Cost: The total depreciation divided by the tenure. ₹8,00,000 / 36 = ₹22,222.22 per month.
Monthly Finance Charge: (Capitalized Cost + Residual Value) * Money Factor. (₹14,00,000 + ₹6,00,000) * 0.00150 = ₹3,000 per month.
Base Monthly Payment: Monthly Depreciation + Monthly Finance Charge. ₹22,222.22 + ₹3,000 = ₹25,222.22.
Total Monthly Payment: The base payment plus GST. ₹25,222.22 + 28% GST (₹7,062.22) = ₹32,284.44 per month.

Car Leasing vs. Buying (EMI)

Choosing between leasing and buying depends on your priorities. Here's a quick comparison:

Monthly Payments: Lease payments are often lower than EMI payments for the same car because you are only paying for the car's depreciation during the lease term, not its full value.
Ownership: With an EMI, you own the car at the end of the loan tenure. With a lease, you do not; you return the car.
Upfront Cost: Leasing typically requires a lower down payment compared to a car loan.
Flexibility: Leasing allows you to drive a new car every few years without the hassle of selling your old one.
Maintenance: Many lease agreements, especially corporate ones, include maintenance, insurance, and registration, offering a hassle-free experience. This is often referred to as a "wet lease".

Leasing can be particularly advantageous for businesses due to tax benefits and for individuals who prefer driving new models frequently with predictable monthly expenses.