Equipment Lease Calculator
Estimate your monthly lease payment for any piece of equipment. Adjust residual value, term, and rate to compare structures side-by-side.
Lease Details
Enter your lease details and click Calculate to see your estimated payments.
How Equipment Lease Payments Are Calculated
An equipment lease payment has two components: a depreciation charge and a finance charge. The depreciation charge covers the portion of the equipment's value that is consumed during the lease term. The finance charge is the cost of borrowing, calculated on the average of the capitalized cost and the residual value.
Monthly Depreciation = (Cost − Down − Residual) ÷ Term
Monthly Finance Charge = (Cost − Down + Residual) × (APR ÷ 12 ÷ 100)
Monthly Payment = Depreciation + Finance Charge
When to use this calculator: Use it when you are evaluating an operating lease or capital lease for business equipment — machinery, vehicles, technology, or medical equipment. Adjust the residual percentage to compare a $1 buyout lease (0% residual reflects full cost amortization) versus a fair market value lease (higher residual, lower payments).