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Lease Calculator

Calculate equipment lease payments and analyze lease types

Currency
Equipment

Purchase price of equipment

Lease Type
Lease Terms
0%20%
0%80%

First payment or cap cost reduction

Additional Options

Service/maintenance agreement

Monthly Payment

$0.00

36 months
Total Lease Cost

$0.00

Buyout Amount

$0.00

End of lease
Effective Rate

0.00%

Lease Summary
Equipment Cost

$0.00

Residual Value

$0.00

Total if Purchased

$0.00

Lease Classification

Operating Lease

Monthly Payment Components
Depreciation(0.0%)
$0.00
Interest/Rent Charge(0.0%)
$0.00
Financial Details
Money Factor

0.00000

Equivalent APR

0.00%

Present Value

$0.00

Annual Lease Expense

$0.00

Understanding Equipment Leases

Fair Market Value (FMV) Lease

At lease end, you can purchase the equipment at its fair market value, return it, or upgrade. Lowest monthly payments but no guaranteed buyout price.

$1 Buyout Lease

Own the equipment for $1 at lease end. Higher monthly payments but essentially a financing arrangement. Classified as capital lease.

10% Purchase Option

Buy at 10% of original cost at lease end. Middle ground between FMV and $1 buyout. Often classified as capital lease.

Capital vs Operating Lease (ASC 842)

Capital leases go on your balance sheet; operating leases are expensed. A lease is likely capital if: term is 75%+ of useful life, PV of payments is 90%+ of value, or there is a bargain purchase option.