Lease Calculator

Calculate lease payments for equipment, commercial property, or vehicles. Compare leasing vs buying and understand total lease costs.

Lease Summary

Monthly Payment

$1,406

36 month term

Total Lease Cost

$50,625

+ $12,500 buyout option

Asset Value$50,000
Total Interest$13,125
Residual Value$12,500
Effective Rate8.75%

Lease Type

Asset Details

$50,000
5,000500,000
25% ($12,500)
070

Lease Terms

7%
220

Payment Breakdown

Asset Value$50,000
- Down Payment-$0
Financed Amount$50,000
- Residual Value-$12,500
Total Depreciation$37,500
Depreciation per Month$1,042
+ Interest Cost$365
Monthly Payment$1,406

Yearly Payment Breakdown

Lease vs. Buy Comparison

FactorLeaseBuy (Finance)
Monthly Payment$1,406$1,269
Total Payments (36 mo)$50,625$45,671
Asset Ownership at EndNo (option to buy)Yes
End of Term OptionsReturn, Buyout, UpgradeKeep or Sell
Tax TreatmentFull payment deductible*Depreciation + Interest*

*Consult a tax professional for specific advice.

End of Lease Options

Return Asset

Return the asset to the lessor. May have fees for excess wear or use.

Purchase Asset

Buy at residual value: $12,500

Extend Lease

Continue leasing, often at reduced monthly payments.

Lease Summary

Monthly Payment

$1,406

36 month term

Total Lease Cost

$50,625

+ $12,500 buyout option

Asset Value$50,000
Total Interest$13,125
Residual Value$12,500
Effective Rate8.75%

Quick Answer

Lease payment = (Depreciation + Interest) / Term. Depreciation = (Asset Cost - Residual Value). Interest uses money factor or lease rate. Our calculator handles any lease type and helps compare to buying.

Key Facts

  • Lease payment based on depreciation plus finance charge
  • Capital lease: appears on balance sheet as asset and liability
  • Operating lease: expense on income statement only
  • Residual value determines how much you pay for depreciation
  • Money factor × 2400 ≈ interest rate equivalent
  • Compare total cost of leasing vs buying for best decision

Frequently Asked Questions

A lease calculator helps you determine monthly payments for leasing equipment, property, or vehicles. It factors in the asset value, interest rate (money factor), lease term, and residual value to calculate your total lease cost and compare leasing vs. buying.
Residual value is the estimated worth of the leased asset at the end of the lease term. Higher residual values mean lower monthly payments because you're financing less depreciation. At lease end, you can often buy the asset for this residual amount.
Leasing offers lower monthly payments, preserves capital, and provides flexibility. Buying builds equity and is cheaper long-term if you keep the asset. Leasing is better for: frequently upgraded equipment, uncertain usage periods, or when cash flow is priority.
Equipment leases typically run 24-60 months. Commercial property leases often span 3-10 years. Vehicle leases are usually 24-48 months. Longer terms mean lower monthly payments but more total interest paid.
Operating leases are like rentals - you use the asset and return it. Payments are operating expenses. Capital (finance) leases are structured like purchases - you may own the asset at end. Capital leases appear on balance sheets as assets and liabilities.