The Equipment Lease Calculator – Know your Lease Amount
Leasing is a valuable alternative for growing businesses. Equipment leasing gives us:
1. Maintain Capital Strength
- Obsolescence Protection
- 100% Financing
- Customized solutions
7. Asset Management
- Tax Advantages
When you are leasing equipment for your business such as computers, heavy construction equipment, used medical equipment or and farm equipments, you may qualify for benefits that you may not have known existed.
About The Equipment Lease Calculator
As a business lessee, you probably want to know approximately what you can expect to pay for an equipment lease. Here’s an equipment lease calculator that will give you fast answers to your financial questions. Simply enter the cost of the equipment that you are looking to finance and analyze quotes for 12, 24, 36, 48, or 60 months. Determine if a lease fits your priorities, long term goals and financial condition, all with a few clicks of your mouse. It’s easier than ever to determine the amount and length of lease that’s right for you.
The results returned by the leasing calculator are monthly rentals based on conservative equipment leasing rates for assets .Some sub-prime business customers may find that the deposit required is greater than the leasing calculator returned, i.e. 12 months rental instead of 6 is needed. Leasing companies will endeavor to achieve the best monthly rental we can for your asset finance. Lease payments are calculated by subtracting the residual from the net selling price, dividing that amount into payments and then adding the lease charge. The formulas mentioned below are basic and can vary.
Step 1 : Calculate the Depreciation
Depreciation = (Selling Price – Residual) / Number of Months
Step 2: Calculate the Lease Charge
To calculate the lease charge you will need to know the Money Factor (money-factor as the “interest rate” for the lease)
((Net Sales Price – Residual)/ Term) + ((Net Sales Price + Residual) x Money Factor) = Month Lease Payment.
Step 3: Convert the Money Factor to an Interest Rate
This formula produces a high interest-rate it doesn’t necessarily mean that it is a bad lease.
(Money-Factor x 2400)
This “lease calculator” takes no account of the following:-
- The size of loan.
- Your company’s circumstances.
- A start-up company may need to have additional security to secure lease finance.
- Other potential costs that an asset lender may charge.
- Examples are documentation or “change of title” fees, which do vary but are generally minimal.
- Other factors that may affect the rentals include:-
– The residual value of any asset to be leased.
– Quarterly, Half Yearly or Annual Rentals.
– The amount of deposit you may wish to put down.
You’ll soon find that the whole equipment leasing process is faster, simpler, and often less costly than other financing alternatives. You can rely on the equipment lease calculator to navigate your way through various options. Our calculator allows you to analyze your business transactions, calculate monthly costs, and preserve your resources.