Lease Calculator
Calculate monthly lease payments for equipment, vehicles, or property with flexible terms and residual values.
Input Parameters
Results
Leasing vs Buying
Leasing typically has lower monthly payments than buying but you don't build equity. Operating leases keep assets off the balance sheet. Finance leases (capital leases) are similar to purchasing on credit. Consider total cost of ownership before deciding.
What is the Lease Calculator?
The Auto Lease Calculator determines the exact monthly payment required to lease a new vehicle. It decodes the confusing dealership terminology like "Capitalized Cost" and "Money Factor" into plain English.
How It Works (Algorithm)
When you lease, you aren't buying the car—you are only paying for the depreciation that occurs while you drive it. The tool subtracts the "Residual Value" (what the car will be worth in 3 years) from the sticker price. You pay that difference, plus the "Money Factor" (interest).
$$ \text{Monthly Fee} = \frac{\text{Cap Cost} - \text{Residual Value}}{\text{Months}} + (\text{Cap} + \text{Residual}) \times \text{Money Factor} $$
The standard dealership equation for auto leases.
How to Use It
Enter the negotiated price of the car and your down payment. Input the dealer's estimated Residual Value and Money Factor (multiply the Money Factor by 2400 to see the actual APR interest rate). The calculator will output your monthly lease bill.