Lease Calculator
Compute the monthly payment on any lease — equipment, property, or vehicle — from the asset value, expected residual value, lease term, and interest rate. See how much of your total payments is depreciation versus financing cost.
TheCalculators — Lease Calculator
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Monthly Pay
$405.06
$20,000 asset → $8,000 residual over 36 months at 6.00%
- Total of 36 Payments
- $14,582.28
- Total Depreciation
- $12,000
- Total Interest
- $2,582.28
- Interest as % of Payments
- 17.7%
- Residual % of Asset
- 40.0%
What your payments cover
- Depreciation (principal)$12,000
- Interest$2,582
Payment = (Asset − PV of residual) amortized over the term. A higher residual lowers your payment, which is why high-residual vehicles lease cheaply.
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Formula
Payment = (Asset − Residual/(1+i)^n) / [ (1 − (1+i)^−n)/i ]
Pro tips
- • Only the depreciation between value and residual is being financed — a bigger residual means a smaller payment.
- • At lease end you usually return the asset or pay the residual; compare leasing vs buying with total cost of both paths.
FAQ
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