Lease payment calculator
Value of the item, buy-back value at the end, length and rate: here is the payment for each month.
Result
555.56Payment per month
- All payments
- 20,000.00
- Payments + fees
- 20,000.00
- Finance cost if you buy it back
- 0.00
Inputs
- Value of the item
- 30000
- Buy-back value at the end
- 10000
- Length
- 36
- Rate per year
- 0
- Fees (optional)
- 0
- Payment made…
- At the start of the month
How it is calculated
Take the value minus today’s worth of the buy-back value: V − R ÷ (1 + i)^n, with i = rate ÷ 12.
Result
Payment per month
- All payments
- 20,000.00
- Payments + fees
- 20,000.00
- Finance cost if you buy it back
- 0.00
How it is calculated
- Take the value minus today’s worth of the buy-back value: V − R ÷ (1 + i)^n, with i = rate ÷ 12.
- Payment = that amount × i ÷ (1 − (1 + i)^−n).
- Payment at the start of the month: divide again by (1 + i). This is the usual lease convention.
Example
30,000 with a 10,000 buy-back, 36 months at 0%: (30,000 − 10,000) ÷ 36 = 555.56 a month.
Good to know
- Insurance, servicing and mileage penalties are not included.
- Real contracts may have a different first payment.
Frequently asked questions
What is this tool used for?
Value of the item, buy-back value at the end, length and rate: here is the payment for each month.
How is the result calculated?
Take the value minus today’s worth of the buy-back value: V − R ÷ (1 + i)^n, with i = rate ÷ 12.
What should I check before using the result?
Insurance, servicing and mileage penalties are not included.