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Meticulous leasing calculators can make the difference between success and failure. But there’s not enough of them. So we decided to make one ourselves. The goal was to help home, business, apartment, and retail landlords assess their financing plans, allowing them to make risky or positive cash-flow moves with confidence, faster and easier than it’s ever been. To do this, we wanted to answer a few key questions: How should leasing be calculated?
Residual value, sometimes called salvage value, is an estimate of how much an asset will be worth at the end of its lease. It is most commonly associated with car leasing. As an example, a car worth $30,000 that is leased for 3 years can have a residual value of $16,000 when the lease ends. Residual value is not exclusive to car leases, but can be leases of any type of asset, as long as it depreciates and can be sold at value once again. For most assets, the longer the lease period, the lower the residual value. One exception to this is real estate assets, which may have higher residual values after the lease period. The term "residual value" is also often used to refer to the value of an asset after depreciation. For more information or to do calculations involving depreciation, use the Depreciation Calculator. Monthly payments are mainly based on the difference between the cost of the new automobile (transaction price or capitalized cost), and what the car is forecasted to be worth at the end of the leasing period (residual value). Security deposits will most likely be required at signing. Additional charges may be imposed by dealers, so discuss all financing carefully before agreeing to a car leasing contract. Some lease contracts allow for the lessee to purchase the leased vehicle after the end of the lease. For more information or to do calculations regarding auto leases, use the Auto Lease Calculator.
This calculator is a self-help tool. The information provided is for illustrative purposes only, and is not an offer to lease or lend. You must qualify for credit from a dealer/lender. Tax, title, license and other fees and finance charges are not included. For example, other fees may be imposed in addition to the down payment, and a security deposit may be required. An extra charge may be imposed at the end of the lease term if your liability (if any) is based on the difference between the residual value of the automobile and its realized value at the end of the lease term.The Lease Calculator can be used to calculate the monthly payment or the effective interest rate on a lease. If the interest rate is known, use the "Fixed Rate" tab to calculate the monthly payment. If the monthly payment is known, use the "Fixed Pay" tab to calculate the effective interest rate. Or use the Auto Lease Calculator regarding auto lease for U.S. residents. (Source: www.calculator.net)