Leasing Calculator
Calculate the monthly payment of a lease contract for a vehicle or equipment.
Tip: Leasing has lower payments than a loan, but at the end you don't own it without an extra purchase.
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About this digital tool
The leasing calculator (finance lease) works out the monthly payment of a lease contract for a vehicle or equipment. Enter the asset price, the down payment if any, the residual value at the end of the contract, the rate and the term, and the tool finds the monthly payment and total cost. Payments are based on the part of the value you use, that is the price minus the residual value, plus the cost of financing.
Leasing usually has lower payments than a loan, but at the end you do not own the asset without an extra purchase or paying the residual value. It suits businesses that want flexibility and people who change vehicles often. Compare with a loan and read the terms on mileage and return. The result is an estimate.
How to use
- Enter the price and the residual value at the end.
- Set the rate and the term.
- See the monthly payment and the total cost.
Frequently asked questions
Leasing or a loan — what is the difference?
With a loan you become the owner straight away. With leasing you use the asset and at the end decide whether to buy it at the residual value or return it.
How is a lease payment calculated?
It is based on the asset's depreciation over the contract (price minus residual value) plus the cost of financing, spread over the months. The calculator does this from the data you enter.
What is residual value in leasing?
It is the asset's expected value at the end of the contract. The higher the residual value, the lower the monthly payment, but it is also the price to buy the asset afterwards.
Who pays for maintenance in leasing?
It depends on the contract. Some include servicing, others don't; read the terms on insurance, maintenance and mileage limits.