What is Lease Calculator?
Analyzes operating and capital finance leases for commercial equipment, office technology, and corporate assets.
How to Use This Calculator
- Enter asset cost basis.
- Enter estimated residual buy-out value.
- Enter lease rate and duration in months.
- View monthly lease obligation and finance charge.
The Mathematical Formula & Variables
Lease Payment = (Cost - Discounted Residual) / Annuity Factor
Step-by-Step Worked Example
Scenario: $36,000 equipment with $7,200 residual at 6.5% for 48 months.
- Amortizes $28,800 principal plus rent charges.
- Monthly payment solves to $731.82.
Result: $731.82 / month
Frequently Asked Questions
What is the difference between an operating lease and a finance lease?
Under an operating lease, the lessor retains asset ownership and risk; under a finance (capital) lease, the economic risks and rewards of ownership transfer to the lessee.