Calculate a lease's residual value and monthly depreciation.
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.
Lease Residual Value
Residual = MSRP x residual%; depreciation = negotiated - residual
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.
A higher residual means lower depreciation per month, so the residual percentage is the main lever on lease pricing.
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.