Lease payment calculator
Model equal end-month payments in one currency; taxes, fees and insurance are excluded.
Formula
r=annual%/1200; S=1+(1+r)+…+(1+r)^(n−1); M=C×r+(C−R)/S. At 0%, M=(C−R)/n.
Monthly payment ≈ (25,000)×(0.003333333333)+((25,000)-(14,000))÷(51.95960099) · Total periodic payments ≈ (295.0362677)×(48) · Modeled finance charge ≈ (14,161.74085)+(14,000)-(25,000) · Cash including residual buyout ≈ (5,000)+(14,161.74085)+(14,000)
How to use
- Enter capital cost after upfront reductions, plus residual value.
- Set annual interest, whole months and any upfront cash already deducted.
- Read payments, finance charge and cash if buying at the residual.
Examples
- Capital 25,000, residual 14,000, annual 4%, 48 months: about 295.04/month.
Frequently asked questions
Is this the money-factor method?
No. This uses a fixed interest rate and payments at month end; follow the timing in your contract.
Does the purchase total guarantee ownership?
Only if a purchase option exists at the entered residual. It adds upfront cash, periodic payments and that buyout.
Why can a payment be negative?
A sufficiently high residual produces a negative mathematical payment. Check your terms; this is not a lease offer.
Sources
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