📝 Lease Calculator

Lease Calculator

Calculate monthly lease payments for any asset — vehicle, equipment, or property. Compare leasing vs buying and see total lease cost over the full term.

Lease Details

Asset Value (MSRP or Appraised)

Residual Value (% of MSRP at lease end)

Money Factor (lease interest rate)

(APR ÷ 2400)

0.00125 = 3% APR. Multiply by 2400 to convert to APR.

Lease Term

months

Down Payment (Capitalized Cost Reduction)

Acquisition / Administrative Fee

Sales Tax Rate

Depreciation / mo

—

Finance Charge / mo

—

Tax / mo

—

Total Lease Cost

—

MSRP / Asset Value	—
Capitalized Cost (MSRP − Down)	—
Residual Value	—
Depreciation/mo	—
Finance Charge/mo	—
Pre-Tax Monthly	—
Tax/mo	—
Monthly Payment	—
Total of Payments	—
Drive-Off (down + first month + fee)	—

FAQ

How is a lease payment calculated?

Lease Payment = Depreciation + Finance Charge + Tax. Depreciation = (Cap Cost − Residual) / Months. Finance Charge = (Cap Cost + Residual) × Money Factor. Tax = (Depreciation + Finance Charge) × Tax Rate.

What is money factor?

Money factor is the financing rate on a lease. Multiply by 2,400 to convert to APR. Example: MF 0.00125 × 2,400 = 3.0% APR. A lower money factor = cheaper financing = lower payment.

What is residual value?

Residual value is what the car is worth at lease end — predetermined by the dealer/manufacturer. Higher residual = lower depreciation charge = lower payment. Better residual = better lease deal.

Lease vs buy — which is better?

Leasing: lower monthly payments, drive new car every 3 years, no trade-in hassle. Buying: build equity, no mileage limits, lower long-term cost. If you drive <15K miles/year and like new cars, leasing often wins.