Calculate lease payments for equipment, commercial property, or vehicles. Compare leasing vs buying and understand total lease costs.
Monthly Payment
$1,406
36 month term
Total Lease Cost
$50,625
+ $12,500 buyout option
| Factor | Lease | Buy (Finance) |
|---|---|---|
| Monthly Payment | $1,406 | $1,269 |
| Total Payments (36 mo) | $50,625 | $45,671 |
| Asset Ownership at End | No (option to buy) | Yes |
| End of Term Options | Return, Buyout, Upgrade | Keep or Sell |
| Tax Treatment | Full payment deductible* | Depreciation + Interest* |
*Consult a tax professional for specific advice.
Return the asset to the lessor. May have fees for excess wear or use.
Buy at residual value: $12,500
Continue leasing, often at reduced monthly payments.
Monthly Payment
$1,406
36 month term
Total Lease Cost
$50,625
+ $12,500 buyout option
Monthly Payment
$1,406
2 insights based on your inputs
Leasing saves $4,954 vs financing over the term.
Equipment lease payments are often fully tax-deductible as business expenses.
Explore other tools that might help
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.
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.
Monthly Payment
$1,406
36 month term
Total Lease Cost
$50,625
+ $12,500 buyout option