Lease Calculator

Calculate monthly lease payments for cars, equipment, and property. Get instant estimates with detailed cost breakdowns and comparison tools to make informed leasing decisions.

Choose the type of lease you want to calculate
Total purchase price of the vehicle or asset
Initial payment made at lease signing
Expected value at end of lease term
Duration of the lease in months
Annual percentage rate (APR) for the lease
Local sales tax rate applied to lease payments
Documentation, acquisition fees, etc.

Calculation Steps

Enter your lease details above to see step-by-step calculations.

About This Calculator

Our Lease Calculator helps you estimate monthly payments and total costs for vehicle, equipment, and property leases. It uses standard leasing formulas to calculate depreciation costs, finance charges, and tax implications.

The calculator considers factors such as the asset's purchase price, residual value, lease term, interest rate, down payment, and additional fees to provide accurate payment estimates.

How to Use

  1. Select Lease Type: Choose between car/vehicle, equipment, or property lease
  2. Enter Asset Price: Input the total purchase price of the vehicle or asset
  3. Set Residual Value: Enter the expected value at the end of the lease term
  4. Choose Lease Term: Specify the duration in months (typically 24-60 months)
  5. Input Interest Rate: Enter the annual percentage rate (APR)
  6. Add Down Payment: Include any upfront payment (optional)
  7. Include Fees: Add documentation, acquisition, or other fees
  8. Calculate: Click the calculate button to get your results

Formula Used

The lease payment calculation uses the following components:

Depreciation Component

Depreciation = (Asset Price - Residual Value) ÷ Lease Term

Finance Component

Finance Charge = (Asset Price + Residual Value) × Money Factor

Money Factor

Money Factor = APR ÷ 2400

Total Monthly Payment

Monthly Payment = Depreciation + Finance Charge + Taxes

The total cost includes all monthly payments plus any down payment and fees. Sales tax is typically applied to the monthly payment amount.

Use Cases / Applications

Vehicle Leasing

  • Car and truck leases for personal use
  • Commercial vehicle fleet planning
  • Luxury vehicle short-term usage
  • Comparing lease vs. purchase options

Equipment Leasing

  • Construction machinery and tools
  • Office equipment and computers
  • Medical and laboratory equipment
  • Manufacturing and industrial equipment

Property Leasing

  • Commercial real estate planning
  • Warehouse and storage facilities
  • Retail space budgeting
  • Office space cost analysis

Examples

Example 1: Car Lease

  • Vehicle Price: $30,000
  • Residual Value: $15,000
  • Lease Term: 36 months
  • APR: 6%
  • Down Payment: $2,000
  • Estimated Monthly Payment: ~$475

Example 2: Equipment Lease

  • Equipment Price: $50,000
  • Residual Value: $10,000
  • Lease Term: 48 months
  • APR: 8%
  • Down Payment: $5,000
  • Estimated Monthly Payment: ~$1,025

Frequently Asked Questions

How is a lease payment calculated?
Lease payments are calculated using the vehicle's depreciation (difference between purchase price and residual value), money factor (interest rate), and lease term. The formula considers the down payment and any additional fees.
What is a money factor in leasing?
The money factor is the interest rate used in lease calculations. It's typically expressed as a decimal (e.g., 0.00125) and can be converted to APR by multiplying by 2400.
What is residual value?
Residual value is the estimated worth of the leased asset at the end of the lease term. It's predetermined by the lessor and affects your monthly payment amount.
Should I lease or buy?
Leasing typically offers lower monthly payments and the ability to drive newer vehicles, but you don't build equity. Buying costs more upfront but you own the asset. Consider your budget, usage patterns, and long-term needs.
Can I negotiate lease terms?
Yes, you can often negotiate the vehicle price, money factor, and fees. However, residual values are typically set by the manufacturer and less negotiable.