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Lease Calculator

Calculate monthly lease payments, depreciation fees, money factors, upfront drive-off costs, and lease vs. buy comparison.

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Upfront & Acquisition Fees
4.8% APR • Money Factor 0.00200 Residual Value: $19,600
Monthly Lease Payment
$415.26
Base: $388.09 + Tax: $27.17/mo
Due at Signing
$4,615
Total Out-of-Pocket: $19,149
Payment Composition Depreciation / Rent / Tax
Depr: $288.89
Finance: $99.20
Tax: $27.17

Lease vs. Purchase Comparison

Save $550/mo leasing
Lease Payment
$415.26/mo
Total lease cost: $19,149
Asset returned at term end
Purchase Loan Payment
$965.46/mo
Total loan cost: $37,757
You own vehicle equity

Lease Cost Schedule Breakdown

Gross Capitalized Cost $33,000
Capitalized Cost Reduction -$3,000
Adjusted / Net Capitalized Cost $30,000
Residual Value $19,600
Total Depreciation $10,400
Total Finance Charges $3,571
Total Sales Tax $978

How Vehicle and Asset Leases Work

A lease is essentially an extended rental agreement where you pay for the depreciation of the vehicle or asset over the lease term, plus a finance charge (rent fee). Rather than purchasing the entire asset, you are only financing the difference between its initial negotiated purchase price and its anticipated residual value at the end of the term.

The Standard Lease Payment Formula

Depreciation Fee: (Net Cap Cost − Residual Value) ÷ Lease Term (Months)
Finance Fee: (Net Cap Cost + Residual Value) × Money Factor
Money Factor: APR % ÷ 2,400
Total Monthly Payment: (Depreciation Fee + Finance Fee) × (1 + Sales Tax Rate)

Lease vs. Buy: Key Trade-offs

Advantages of Leasing

  • Significantly lower monthly payments compared to buying.
  • Always drive newer models protected by manufacturer warranty.
  • Lower initial down payment or cash commitment.
  • No trade-in or depreciation resale hassle at the end of the term.

Advantages of Buying

  • Long-term equity ownership once loan is retired.
  • No mileage restrictions or wear-and-tear penalties.
  • Lower cost per year of driving if kept for 6+ years.
  • Freedom to customize or sell whenever you choose.

Understanding your calculation

Method, example and limitations

How the calculation works

Lease estimates allocate the asset’s modeled depreciation and financing cost over the contract term, using the entered residual and rate assumptions.

Example to check

An asset starting at 24,000 with a 12,000 residual over 24 months has a 500 monthly depreciation component before finance charges and tax.

Before using the result

Check residual obligations, maintenance, mileage or usage limits, upfront charges and end-of-lease fees. The full contract can cost more than the displayed recurring payment.

Calculation methodology · Report a result that needs review