Calculate car lease payments, equipment lease costs, and property lease expenses. Compare lease vs buy with total cost breakdown.
This lease calculator helps you estimate monthly lease payments for cars, equipment, and property. It uses the standard lease formula: monthly depreciation + monthly finance charge + tax. See your total lease cost, depreciation amount, and finance charges. All calculations happen in your browser — your data never leaves your device.
A lease payment has two main parts: (1) Depreciation = (Lease Price - Down Payment + Fees - Residual Value) / Lease Term. (2) Finance Charge = (Net Capitalized Cost + Residual Value) × Money Factor. The money factor = APR / 2400. Sales tax is applied to the monthly payment.
Residual value is the estimated worth of the leased item at the end of the lease term. For cars, this is typically 50-60% of MSRP for a 3-year lease. A higher residual value means lower monthly payments because you are paying for less depreciation.
Leasing is better if you want lower monthly payments, a new vehicle every few years, and do not care about ownership. Buying is better if you plan to keep the item long-term, want to build equity, or drive a lot of miles (leases have mileage limits).
The money factor is the lease equivalent of an interest rate. To convert to APR: multiply by 2400. For example, a money factor of 0.00208 equals 5% APR. Dealers sometimes quote money factors instead of APRs.