Lease Calculator
Estimate a monthly lease payment from negotiated asset value, residual value, term, APR-equivalent finance rate, tax and upfront reduction.
Enter your values
Change any assumption and calculate again to compare results.
General Lease Payment Estimate
A lease payment can be thought of as paying for the portion of an asset you use during the lease plus a finance charge. This calculator starts with the negotiated asset value, subtracts any upfront capitalized-cost reduction, adds financed fees, and compares the adjusted capitalized cost with the residual value.
The depreciation charge is the difference between adjusted capitalized cost and residual value divided by the number of months. The finance charge uses a money-factor style calculation based on the average of capitalized cost and residual value.
APR Equivalent and Money Factor
For convenience, enter an APR-equivalent percentage. The calculator divides the APR by 2,400 to obtain an approximate money factor. Lease contracts may quote the money factor directly, and lender-specific rounding or fees can make the actual payment differ.
Example
For a $40,000 negotiated value, $22,000 residual, $3,000 upfront reduction, $900 financed fees and a 36-month term, the calculator shows the depreciation charge, finance charge, pre-tax payment, tax and estimated monthly lease payment.
Before Signing a Lease
Check the actual capitalized cost, residual, acquisition fee, disposition fee, mileage limits, wear charges, purchase option and early-termination terms. A low monthly payment can still come with a high upfront payment or restrictive end-of-lease costs.
Frequently Asked Questions
How is the lease payment estimated?
The calculator separates the payment into a depreciation charge and a finance charge. It converts the APR-equivalent input to a money factor by dividing by 2,400, then adds the monthly tax entered.
What is residual value?
Residual value is the estimated value of the leased asset at the end of the lease. A higher residual generally reduces the depreciation portion of the monthly payment.
Is this only for cars?
No. The structure can be used as a general planning estimate for assets quoted with a capitalized cost, residual value, term and finance factor. Actual equipment and vehicle contracts may use different fee or tax conventions.