Covered Patio Cost Calculator

Car Lease Calculator

Estimated Monthly Payment

$0.00

Monthly Depreciation: $0.00

Monthly Rent Charge: $0.00

Residual Value: $0.00

function calculateLease() { var msrp = parseFloat(document.getElementById('msrp').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 moneyFactor = parseFloat(document.getElementById('moneyFactor').value); var residualPercent = parseFloat(document.getElementById('residualRate').value); if (isNaN(msrp) || isNaN(moneyFactor) || isNaN(residualPercent) || msrp <= 0) { alert('Please enter valid numbers for MSRP, Money Factor, and Residual Value.'); return; } var capitalizedCost = msrp – downPayment – tradeIn; var residualValue = msrp * (residualPercent / 100); // Calculation Logic var monthlyDepreciation = (capitalizedCost – residualValue) / term; var monthlyRentCharge = (capitalizedCost + residualValue) * moneyFactor; var totalMonthly = monthlyDepreciation + monthlyRentCharge; if (totalMonthly < 0) totalMonthly = 0; document.getElementById('monthlyPaymentDisplay').innerText = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('depreciationPart').innerText = '$' + monthlyDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('rentPart').innerText = '$' + monthlyRentCharge.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('residualTotal').innerText = '$' + residualValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResult').style.display = 'block'; }

Understanding car lease math is the best way to ensure you are getting a fair deal at the dealership. Unlike a traditional auto loan, where you pay off the entire value of the vehicle, a lease payment is primarily based on the car's depreciation during the time you drive it.

Key Components of a Car Lease

To use our car lease calculator effectively, you should understand these four critical terms:

• MSRP (Gross Capitalized Cost): The sticker price of the vehicle. You can often negotiate this number down before starting the lease calculation.
• Residual Value: This is the estimated value of the car at the end of the lease. It is set by the leasing company. A higher residual value usually results in a lower monthly payment.
• Money Factor: This represents the interest rate. To convert the money factor to an APR (Annual Percentage Rate), multiply it by 2400. For example, a money factor of 0.00125 is equal to a 3% APR.
• Lease Term: The duration of the agreement, typically 24, 36, or 48 months.

The Formula Behind the Calculator

Our calculator uses the industry-standard formula to determine your payment:

1. Monthly Depreciation: (Adjusted Capitalized Cost – Residual Value) / Lease Term
2. Monthly Rent Charge: (Adjusted Capitalized Cost + Residual Value) × Money Factor
3. Total Payment: Monthly Depreciation + Monthly Rent Charge

Example Calculation

Imagine you are leasing a car with an MSRP of $40,000. The dealer offers a 36-month term with a 60% residual value and a money factor of 0.0015. You put $2,000 down.

• Capitalized Cost: $40,000 – $2,000 = $38,000
• Residual Value: $40,000 × 0.60 = $24,000
• Monthly Depreciation: ($38,000 – $24,000) / 36 = $388.89
• Monthly Rent Charge: ($38,000 + $24,000) × 0.0015 = $93.00
• Total Monthly Payment: $481.89

Tips for Lowering Your Payment

If the monthly payment is higher than your budget, consider these strategies:

1. Negotiate the Sale Price: Don't just accept the MSRP. Negotiating a lower "Cap Cost" directly reduces your monthly depreciation charge.

2. Look for High Residuals: Cars that hold their value well (like certain SUVs and trucks) often have lower lease payments because the gap between the sale price and the residual value is smaller.

3. Check Your Credit: The money factor is heavily influenced by your credit score. A higher score earns you a lower money factor, which reduces the "Rent Charge" portion of your payment.