Attach Equation Lease For Free

Rent Charge = (Net Capitalized Cost + Residual) × Money Factor A Rent Charge requires you to add both the Net Capitalized Cost of the vehicle to the Residual before you multiply it by your Money Factor (for more information on determining Money Factors, see Leasing Basics) Many people think that adding both the Net

Total Monthly Payment Once you input the vehicle price, down payment, residual value, estimated sales tax, money factor, and lease term into the lease payment calculator, you're going to get your monthly lease payment. This is the money you pay each month to lease the car.

You can use the lease charge to calculate the money factor with this formula: Money Factor = Lease Charge / (Capitalized Cost Residual Value) Lease Term. Once you have the money factor, you can multiply it by 2,400 to convert it to an interest rate.

Lease Money Factor Unlike an APR, it's not a percentage, but you can convert it to something comparable by multiplying by 2,400. For example, if the money factor on a lease is 0.002, you would multiply it by 2,400 to get an equivalent APR of 4.8 percent.

How is the lease payment calculated?Start with the sticker price (MSRP) of the car.Take the MSRP and multiply it by the residual percentage.This equals the residual value.Then take the negotiated selling price of the car.Add in the fees to get the gross capitalized cost.Subtract your down payment and rebates.More items...

The portion of your base monthly payment that is not depreciation or any amortized amounts. This charge is similar to interest on a loan. The rent charge is usually determined by using a money factor (sometimes called a lease factor).

You want the $50,000 car and have negotiated the price down to $45,000. It will be worth $30,000 at the end of the lease, so your lease cost, before interest, taxes, and fees, will be $15,000 divided into equal monthly payments. If you put $2,000 down, the amount you make payments on drops to $13,000.