Lease Calculator: Estimate Your Monthly Lease Payment
A lease calculator helps estimate the monthly payment, total payments, interest cost and residual value associated with a lease. By entering the asset value, residual value, lease term and interest rate, you can quickly see an estimated monthly lease payment.
The calculator also provides an amortization-style schedule so you can understand how the modeled principal and interest change throughout the lease term.
How to Use the Lease Calculator
Enter the asset value, residual value, lease term and interest rate. Then click the green Calculate button to update the monthly payment, total payments, interest and schedule.
- Asset Value: Enter the value of the asset being leased.
- Residual Value: Enter the estimated value of the asset at the end of the lease.
- Lease Term: Enter the number of years and months.
- Interest Rate: Enter the annual interest rate used for the lease estimate.
- Calculate: Click Calculate to update the results.
What Is Residual Value?
Residual value is the estimated value of the leased asset at the end of the lease term. A higher residual value can reduce the amount of value being depreciated during the lease period.
Fixed Rate vs. Fixed Pay
The Fixed Rate mode calculates the estimated monthly lease payment from the asset value, residual value, term and interest rate.
The Fixed Pay mode works in reverse. You enter a target monthly payment, and the calculator estimates the implied annual interest rate based on the other values entered.
Lease Payment and Total Interest
The calculator displays the estimated monthly payment, total scheduled payments and estimated interest. These figures can help you compare different lease assumptions and understand the overall cost.
Amortization Schedule
The amortization schedule provides either an annual or monthly view. The table shows payments, interest, principal or depreciation and the remaining modeled balance.
Important Note About Lease Estimates
This calculator provides an estimate based on the assumptions entered. Actual lease agreements can include taxes, fees, acquisition charges, insurance requirements, registration costs, money factors and other contract-specific terms. Always review the actual lease agreement before making a financial decision.
Related Financial Calculators
You can also use the site's other financial calculators to compare different borrowing and payment scenarios.