Lease Payment Calculator

Knowing your monthly lease payment before entering into a lease agreement is vital for business forecasting. For starters, by knowing the monthly payment for your lease, you will know whether or not you can afford it. You can also use this information to try to match your lease payment to the amount of money you expect to earn from the new piece of equipment.

Loan Amount – This refers to the amount you plan on financing. This will equal the cost of the equipment minus your down payment. For example, if you were to purchase a $100,000 piece of equipment with a 20% down payment ($20,000), your loan amount would be $80,000.

Annual Interest Rate – Use the interest rate you believe you will receive from your lender. If you have been quoted a lease rate factor, ask your lender what that would translate to in an interest rate.

Loan Length – How long would you prefer to finance your equipment? The longer the loan length, the shorter the payment will be.  Be sure to use a number in years. A 60 month lease is equal to 5 years and so on.

Pay Periodicity – Most lease agreements have monthly lease payments, but you can also try to negotiate a different payment frequency depending on your preference.

Payment – This is what you can expect to pay per frequency (i.e. monthly, annually)

Loan Amortization Schedule – If you want to see how much of your payment is principal and interest each payment, check out the schedule