How to use the Lease Calculator
The lease calculator estimates a payment when you rent an asset and return it at the end.
What you need to enter
- Asset price ($)
- Residual value ($)
- Interest rate (% / year)
- Term (months)
The formula
Payment is the amount of price that depreciates plus interest, using the present-value formula with the residual value.
Worked example
Using the default values in the calculator:
- Asset price ($): 20000
- Residual value ($): 8000
- Interest rate (% / year): 6
- Term (months): 36
| Monthly lease payment | $405.06 |
| Total payments | $14,582.28 |
| Total cost to keep | $22,582.28 |
Tips for better results
- Check purchase option price at the end.
- Compare with the cost of buying.
Common mistakes to avoid
- Overlooking fees.
- Forgetting insurance requirements.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.