Lease Calculator
Calculate monthly lease payments for cars, equipment, and property
Our lease calculator helps you determine monthly lease payments for various assets including vehicles, equipment, and property. Understanding lease terms, residual values, and money factors is essential for making informed leasing decisions and comparing lease offers.
Lease Details
Additional Fees
Lease Summary
Payment Breakdown
| Depreciation Payment | $333 |
| Finance Payment | $60 |
| Sales Tax | $32 |
| Monthly Payment | $426 |
Upfront Costs
| Down Payment | $2,000 |
| Acquisition Fee | $595 |
| Total Upfront | $2,595 |
How to Use
1. Select your lease type (car, equipment, or property)
2. Enter the asset value and down payment
3. Set the lease term and residual value
4. Input the money factor or interest rate
5. Add any additional fees and taxes
6. Click "Calculate" to see your monthly payment
Lease Payment Formula
Lease payments consist of two main components:
Depreciation Payment:
(Asset Value - Residual Value) ÷ Lease Term
Finance Payment:
(Asset Value + Residual Value) × Money Factor
The total monthly payment is the sum of these two components plus any applicable taxes.
Understanding Lease Terms
Money Factor
The lease equivalent of an interest rate. To convert to APR, multiply by 2,400.
Residual Value
The estimated value of the asset at the end of the lease term. Higher residual values result in lower monthly payments.
Acquisition Fee
A fee charged by the lessor to initiate the lease, typically $300-$1,000 for vehicles.
Disposition Fee
A fee charged at the end of the lease if you don't purchase the asset, typically $300-$500.
Lease vs Buy Considerations
Leasing Advantages
• Lower monthly payments
• Warranty coverage during lease term
• No depreciation risk
• Ability to drive newer models
Leasing Disadvantages
• No ownership or equity building
• Mileage restrictions (for vehicles)
• Wear and tear charges
• Continuous monthly payments
Frequently Asked Questions
Can I negotiate lease terms?
Yes, you can often negotiate the asset price, money factor, and fees. The residual value is typically set by the manufacturer or leasing company.
What happens at the end of the lease?
You can return the asset, purchase it for the residual value, or sometimes extend the lease.
Are there tax benefits to leasing?
For business use, lease payments are often fully deductible as operating expenses. Consult a tax professional for specific advice.