Lease Residual Value
Calculate a lease's residual value and monthly depreciation.
About Lease Residual Value
Residual value is the MSRP times the residual percentage set by the lease. The monthly depreciation is the negotiated price minus that residual, spread over the term. A higher residual means lower depreciation per month, so the residual percentage is the main lever on lease pricing.
Formula
Lease Residual Value
Residual = MSRP x residual%; depreciation = negotiated - residual
- residual
- Factory-estimated value at the end of the lease
Worked example
With the default values below, Lease Residual Value returns Residual Value of $22,040.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- MSRPminimum 0
- 38,000
- Residual percentageaccepts 0–90 %
- 58 %
- Negotiated priceminimum 0
- 35,000
- Lease termminimum 1 mo
- 36 mo
Results
- Residual Value
- $22,040.00
- Total Depreciation
- $12,960.00
- Monthly Depreciation
- $360.00
Step by step
- 1Values used
- 2Lease Residual Value
- 3Residual Value= 22,040.00
- 4Total Depreciation= 12,960.00
- 5Monthly Depreciation= 360.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Lease Residual Value calculated?
Residual = MSRP x residual%; depreciation = negotiated - residual Residual value is the MSRP times the residual percentage set by the lease. The monthly depreciation is the negotiated price minus that residual, spread over the term.
Why does Lease Residual Value matter?
A higher residual means lower depreciation per month, so the residual percentage is the main lever on lease pricing.
What values do I need to enter?
This calculator takes 4 inputs: MSRP, Residual percentage, Negotiated price, Lease term. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.