How to calculate a lease installment
- 1.
Enter the net value
Type the price of the asset excluding VAT, for example a car or a machine.
- 2.
Set the initial payment, term and buyout
Enter the initial payment and buyout as percentages of the net value, and the term in whole months.
- 3.
Enter the interest rate
Use the annual rate from the offer (e.g. WIBOR plus margin). The calculator shows the net and gross installment and the lease factor.
- 4.
Check the tax benefit
Choose the asset type (for passenger cars: drive and CO2 emissions), how the car is used and your tax rate to see deductible VAT, tax-deductible costs and the tax saving.
Lease installment formula with a buyout
A lease installment is an annuity in which the buyout (residual value) is paid separately at the end of the contract:
P = (F − B / (1 + r)n) × r / (1 − (1 + r)−n)
where F is the amount financed (net value − initial payment), B the buyout, r the annual rate divided by 12 and n the number of installments.
Example: PLN 100,000 net, 10% initial payment, 36 installments, 20% buyout, 8%
- Initial payment PLN 10,000, amount financed PLN 90,000, buyout PLN 20,000.
- Net installment: PLN 2,326.88, gross (23% VAT): PLN 2,862.06.
- Total net payments: 10,000 + 36 × 2,326.88 + 20,000 = PLN 113,767.68.
- Lease factor: 113,767.68 / 100,000 = 113.77%, so financing costs PLN 13,767.68.
A higher initial payment and buyout lower the installment, but the buyout has to be paid in one go at the end.
Operating vs financial lease for a Polish business
Polish tax law distinguishes two kinds of lease, and the choice decides how your sole proprietorship (JDG) or company books the costs:
- Operating lease (leasing operacyjny) - the lessor owns and depreciates the asset. You deduct the initial payment and the net installments as costs, and VAT is charged on each installment. The term must be at least 40% of the standard depreciation period - 24 months for a car. This calculator models this type.
- Financial lease (leasing finansowy) - you depreciate the asset yourself, only the interest part of the installments is a cost, and VAT on the full value is usually due upfront with the first installment.
The income tax saving depends on your tax form: 12% or 32% on the tax scale, 19% flat tax, or 9% / 19% CIT for companies. If you pay lump-sum tax on revenue (ryczałt), costs do not reduce your tax at all, so the income tax saving does not apply - only VAT deduction does, if you are a VAT payer.
Passenger car caps from 2026
Lease payments for a passenger car count as costs only up to a cap on the car’s value. For contracts signed from 1 January 2026:
| Passenger car | Cap |
|---|---|
| Electric or hydrogen | PLN 225,000 |
| Combustion or hybrid, CO2 below 50 g/km | PLN 150,000 |
| Combustion or hybrid, CO2 50 g/km or more | PLN 100,000 |
Contracts signed before 2026 keep the previous PLN 150,000 cap (PLN 225,000 for electric cars) until they end. Vans, trucks, machinery and equipment have no cap. If the car is worth more than the cap, the capital part of each payment is deductible in the proportion cap / car value; the interest part is fully deductible.
Example: PLN 200,000 combustion car, mixed use, 19% flat tax
10% initial payment, 48 installments, 1% buyout, 7%: the net installment is PLN 4,274.10. Half of the VAT (PLN 25,893.03) is deductible; the other half raises the value for the cap to PLN 223,000, giving a ratio of 44.84%. Deductible costs are PLN 129,279.83 and the income tax saving is PLN 24,563.17. With CO2 below 50 g/km the saving would be about PLN 33,968, and with an electric car about PLN 47,699.
VAT on a leased car: 50% or 100%?
For a passenger car also used privately you deduct 50% of the VAT on the initial payment and installments. The full 100% is available only when the car is used exclusively for business - you must file the VAT-26 form and keep a mileage log. Machinery, equipment and trucks get full VAT deduction without a cap.
Common mistakes: comparing offers by installment alone (ignoring the initial payment and buyout), forgetting the cap on expensive cars, and counting VAT as a cost when the business is an active VAT payer. If you would rather buy with a loan, compare the payments in the loan calculator, and check your borrowing limits in the borrowing capacity calculator.
Frequently asked questions
What is the lease installment on a PLN 100,000 car?
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With a 10% initial payment, 36 installments, 20% buyout and 8% interest, the installment is PLN 2,326.88 net (PLN 2,862.06 gross). The total net cost is PLN 113,767.68.
What is the lease factor?
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It is the sum of all net payments (initial payment, installments, buyout) divided by the net value of the asset. A factor of 113.77% means financing costs 13.77% of the car’s value.
What is the car leasing cap in Poland in 2026?
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For contracts signed from 1 January 2026: PLN 225,000 for electric and hydrogen cars, PLN 150,000 for cars emitting less than 50 g/km of CO2 and PLN 100,000 for other combustion cars and hybrids.
Can I deduct all the VAT on a leased car?
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For a passenger car in mixed use you deduct 50% of the VAT. You can deduct all of it if the car is used only for business (VAT-26 and a mileage log), or if you lease machinery, equipment or a truck.
Is leasing worth it on lump-sum tax (ryczałt)?
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On ryczałt you pay tax on revenue, so lease payments do not lower your income tax. You can still deduct VAT if you are a VAT payer, but the tax benefit is much smaller than on the scale or flat tax.
Is the buyout a tax-deductible cost?
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The buyout is not a lease payment. After buying the car out you add it to your fixed assets and depreciate it, or, if it is worth no more than PLN 10,000, expense it at once, subject to the passenger car cap.
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