Thank u so much 
First Post! Having some calculator questions / issues. Iâm calculating the lease for a $38 car. Changing ONLY the MF added $42 more to my payment, just by upping APR from 1% to 2.66%? This seems like a huge increase for such a small change. Is this right?
Sale Price: $38k
MF .00043 vs .00111
Monthly Payment: $340 vs $382
Yes. Thatâs how rent charge works, if you changed nothing else that should be the correct change. Youâre nearly tripling the MF, shouldnât it go up by all means and logic?
BTW RV/MF is found for normal people at the edmunds forumâŚ
Search forum.edmunds.com + lease deals and prices + model of car youâre looking for.
Donât guess numbers with what you want to pay.
Thanks! Sorry, very new to all of this. Rent charge is another way to put MF / APR?
Ah ok thanks for confirming! In my head 1% vs 2.6% APR sounded like such a tiny change, didnât expect a 15% or so increase in monthly payment! Iâve been on the Edmund forums, got the RV/MV/Incentives etc. Just thought I was using the calculator wrong. Thanks again
The following is an over simplification meant to highlight the general concept and isnât 100% accurate
The problem is that many people look at this and say âwell, my payment is $100 before the rent charge, and itâs only 1%, so how could it make much difference? After all, 1% of $100 is only $1.â
What they miss is that in a lease, youâre essentially taking out a loan for the entire price of the vehicle. The rent charge is basically the average interest paid as the vehicle depreciates from the selling price to the residual value.
In this case, your selling price is $38000. If we assume your RV is about $20,000, then the rent charge is the APR being applied to the average between the two.
So instead, itâs the difference between 1% and 2.66% of $29,0000.
That means, each year, the rent charge would increase from $290 to $771. Divide by 12, and youâre going from $24/month in rent charge to $75/month in rent charge.
The preceding as been an over simplification to highlight the concept
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Right of course! Iâd never sign a deal with out all this sorted. This is day 1 of research 
The logic makes sense. For simple folk like me you see a lease and figure youâre only paying interest on what you borrow, not the total. But even so, at the total cost I wouldnât think a 1.5% increase in APR would have such a big affect. Shame on me, I recently refiâd my mortgage for this very reason should have known!
You basically are borrowing the whole amount. Youâve just pre-arranged the repurchase at the end of the set term. Think of it more like âIâm buying and financing this vehicle for $38k and the bank agrees to purchase it back from me for $20k after 3 years.â
Yeah that makes sense. Thanks all super helpful
Is there any way to get Texas taxes into the monthly payment? I can only seem to get it to show it as upfront payment. Easy to calculate manually, just curious.
Click the third tax option for tax on full amount, adjust the das as needed per the calculator FAQ.
Click on the cap tax option.
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Different states tax some of the fees differently, but more importantly, separating out the fees rather than lumping them all together allows you to comparison shop properly as identify which fees may contain hidden dealer mark ups vs which fees canât change.
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Not that this matters, but just FYI.
The calculator score doesnât seem to value tax credits. If I keep it at msrp and reduce taxes the score is lower than a small discount with full taxes, even though the total payment is less on the first scenario.
Hello, is there a way to bypass this?
Reduce residual by .25/.3 per mile if the car is eligible to be leased, formula is mileage - 500 multiplied by per mile cost (.25 or .3 for high end models).
When using the calculator what should I put in as selling price? and is the tax rate based on the dealerâs location or where itâs going to be registered?
The selling price, before incentives. On the contract itself, itâll be listed as âagreed on valueâ generally (although if there are direct to dealer incentives included, youâll want to back them out from this number).
Tax rate is based on registration location.
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Iâm trying to construct a deal to aim for, but I donât know how much off MSRP to calculate