1. What is the Company Car Lease Calculation?

The Company Car Lease calculation determines the monthly payment for a leased company vehicle, accounting for the vehicle's cost, residual value, lease term, and applicable VAT.

2. How Does the Calculator Work?

The calculator uses the lease payment formula:

Where:

• \( Cost \) — Total vehicle cost (USD)
• \( Residual \) — Estimated residual value at lease end (USD)
• \( Term \) — Lease duration in months
• \( VAT \) — Value Added Tax (USD)

Explanation: The calculation spreads the depreciation (cost minus residual) over the lease term and adds the monthly VAT amount.

3. Importance of Lease Calculation

Details: Accurate lease payment calculation is crucial for company budgeting, tax planning, and comparing lease vs. purchase options.

4. Using the Calculator

Tips: Enter all values in USD. Cost should be greater than residual value, term should be at least 1 month, and VAT should be the monthly amount.

5. Frequently Asked Questions (FAQ)

Q1: What's included in the vehicle cost?
A: This should include the purchase price plus any additional fees or taxes included in the lease.

Q2: How is residual value determined?
A: The leasing company typically sets the residual based on the vehicle's expected depreciation.

Q3: Is VAT calculated monthly or annually?
A: Enter the monthly VAT amount that applies to the lease payment.

Q4: Are there other lease fees not included here?
A: This is a basic calculation. Actual leases may include additional fees like acquisition or disposition fees.

Q5: Can this be used for personal car leases?
A: While the basic calculation is similar, personal leases may have different tax treatments and fees.