Lease Calculator
Calculate monthly lease payments for any asset with residual value, money factor and tax. Understand the true cost of leasing.
Original price or MSRP of the leased item.
Expected end-of-lease value as a % of the asset value.
Monthly payment
$260
Tax-inclusive (0%)
Residual value
$6,000
Value at lease end
Total of payments
$15,600
Over 60 months
Depreciation
$200/mo
The part of each payment covering the asset value used up
A lease pays for the value you use plus a financing charge. For equipment and vehicles, a higher residual means a lower payment.
How it works
Monthly payment = (depreciation + rent charge + fees) ÷ term, with sales tax applied to the payment.
Example: $40,000 MSRP, $26,000 residual, 0.0015 MF, 36 months → ~$478/month.
Lease Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Calculate monthly lease payments for any asset with residual value, money factor and tax. Understand the true cost of leasing. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.
Popular uses: lease calculator · lease payment calculator · equipment lease calculator
Last updated: August 2026
How We Calculate
This calculator uses standard mathematical formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server. The formulas used are industry-standard and match those used by banks, financial institutions and health organizations.
For financial calculators, we use RBI-approved formulas and regularly updated bank rates. For health calculators, we use WHO-recommended formulas and medical standards. All rates and standards are sourced from official government and regulatory websites.
Frequently Asked Questions
What is the difference between leasing and buying?
Leasing pays for the car's depreciation over the term and you return the vehicle; buying pays toward ownership and you keep the car. Leases have lower monthly payments but no equity at the end.
What fees should I include in a lease payment?
Include the acquisition fee, sales tax, registration and any capitalised cost reduction. This calculator folds the taxable and upfront costs in so your estimate matches a dealer quote.
Can I negotiate a lease payment?
Yes — negotiate the capitalised cost (the car price) just like a purchase. Lowering the selling price lowers depreciation and the rent charge, cutting your monthly payment.
Is this lease calculator free to use?
Yes, True Calculator's lease calculator is completely free with no sign-up, no app install and no usage limits.
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