Lease Calculator
The Lease Calculator can be used to calculate the monthly payment or the effective interest rate on a lease. If the interest rate is known, use the "Fixed Rate" tab to calculate the monthly payment. If the monthly payment is known, use the "Fixed Pay" tab to calculate the effective interest rate. Or use the Auto Lease Calculator regarding auto lease for U.S. residents.
Result
Frequently Asked Questions
Fixed Rate Mode: Use this when you know the interest rate and want to calculate the monthly payment.
Fixed Pay Mode: Use this when you know the monthly payment and want to calculate the effective interest rate.
Residual value is the estimated value of the asset at the end of the lease period. This value is used to calculate the depreciable base of the lease.
Formula:
The monthly lease payment is calculated using the following formula:
Where:
- M = Monthly Payment
- PV = Present Value (Asset Value − Residual Value)
- r = Monthly Interest Rate (Annual Rate / 12 / 100)
- n = Total Number of Months
- RV = Residual Value
The donut chart displays the proportion of your total lease payments allocated to:
- Principal (Blue): The depreciation of the asset value
- Interest (Green): The cost of financing (interest charges)
Yes, this calculator works for any type of lease. However, for U.S. auto leases specifically, you may want to use the specialized Auto Lease Calculator which accounts for additional factors like acquisition fees, disposition fees, and sales tax.
The effective interest rate is the actual annual percentage rate (APR) you're paying over the life of the lease. It takes into account the monthly payment, lease term, and asset values to determine the true cost of borrowing.