Present cost of lease payments (PV) calculator

Discount regular lease payments and any specified final buyout to compare equivalent cost timing.

\mathrm{PV} = \frac{A \times \left[1 - \left(1 + i\right)^{-n}\right]}{i} + \frac{B}{\left(1 + i\right)^{n}}

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

Given

\mathrm{PV} = \frac{18{,}000 \times \left[1 - \left(1 + 0.06\right)^{-7}\right]}{0.06} + \frac{12{,}000}{\left(1 + 0.06\right)^{7}} \approx 108{,}464

Symbol	Meaning	Unit
$\mathrm{PV}$	present lease payment cost	$
$A$	annual end-of-year lease payment	$/yr
$i$	annual discount fraction	fraction
$n$	lease years	year
$B$	optional final buyout cost	$

Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.