Lease vs Buy Payment Calculator

Calculation Formulas

Loan Payment: M = P[r(1+r)^n]/[(1+r)^n-1]

Where M = monthly payment, P = principal, r = monthly rate, n = number of payments

Lease Payment:

• Depreciation = (Cap Cost - Residual) / Lease Months
• Finance Charge = (Cap Cost + Residual) × Money Factor
• Monthly Lease = (Depreciation + Finance Charge) × (1 + Tax Rate)

Money Factor to APR: APR ≈ Money Factor × 2400