Lease Calculator
Calculate monthly lease payments, total costs, and compare leasing vs buying options
Calculate Lease Payment
Initial retail value of the asset you want to lease
Estimated value of the asset at the end of the lease term
Annual percentage rate charged by the lessor
Duration of the lease agreement
Lease Details
Lease Payment Results
Payment Schedule Preview (First 12 Months)
| Month | Payment | Cumulative | Remaining Months |
|---|---|---|---|
| 1 | $295.04 | $295 | 47 |
| 2 | $295.04 | $590 | 46 |
| 3 | $295.04 | $885 | 45 |
| 4 | $295.04 | $1,180 | 44 |
| 5 | $295.04 | $1,475 | 43 |
| 6 | $295.04 | $1,770 | 42 |
| 7 | $295.04 | $2,065 | 41 |
| 8 | $295.04 | $2,360 | 40 |
| 9 | $295.04 | $2,655 | 39 |
| 10 | $295.04 | $2,950 | 38 |
| 11 | $295.04 | $3,245 | 37 |
| 12 | $295.04 | $3,540 | 36 |
Example Calculation
Car Lease Example
Product Value: $30,000 (new car retail price)
Down Payment: $5,000 (16.67%)
Residual Value: $14,000 (46.67% after 4 years)
Interest Rate: 4% APR
Lease Term: 4 years (48 months)
Calculation Results
Monthly Payment: $295.04
Total Payments: $14,162
Total Interest: $3,162
Total Cost to Own: $33,162
Lease vs Buy
Leasing
Lower monthly payments
No ownership, mileage limits
Buying
Build equity, full ownership
Higher payments, depreciation
Common Lease Types
Leasing Tips
Check mileage limits carefully
Understand wear and tear charges
Compare total cost vs buying
Negotiate the price, not just payment
Understanding Lease Calculations
What is a Lease?
A lease is a contractual agreement where you pay to use an asset for a specified period. Unlike purchasing, you don't own the asset but have the right to use it. At the end of the lease term, you typically return the asset or have the option to purchase it.
Lease Payment Formula
Monthly Payment = (LA × i × (1+i)ⁿ - RV × i) / ((1+i)ⁿ - 1)
- LA: Lease Amount (Product Value - Down Payment)
- i: Monthly interest rate
- n: Number of months
- RV: Residual Value
Key Lease Terms
- •Capitalized Cost: The agreed-upon value of the leased asset
- •Residual Value: Estimated value at lease end
- •Money Factor: Interest rate expressed as decimal
- •Disposition Fee: End-of-lease return charge
Important: This calculator provides estimates for educational purposes. Actual lease terms may include additional fees, taxes, and conditions not reflected here.