FASB Lease Calculator
Choose your preferred standard
Reporting based on New or Existing Standards?
Does the lease term equal or exceed 75% of the expected economic life of the asset?
Does the lease term equal or exceed 51% of the expected economic life of the asset?
Is ownership of the asset transferred to lessee at end of term?
Does lessee have the right to purchase the asset that is reasonably certain of being exercised?
Is the discounted net present value of the lease, based on minimum rent and additional rent payable, equal or greater than the fair market value of the property?
What is your corporate IBR (Incremental Borrowing Rate) for like debt for a like term? This will be your discount rate.
Based on your responses, the lease is projected to be classified as a(n)
What is the total rentable area leased (in SQFT or SQM)?
What is the total term of the lease to the nearest whole year?
Initial Direct Costs
Does Lease contain a right to terminate?
Is it reasonably certain that termination right will be exercised?
If so, after what year is the termination?
Amount of termination fee?
Does this rent contain property taxes and insurance?
Are the amounts payable variable (both up and down) or does lessee pay only increases above a base or base year amount?
Annual property tax and insurance portion of Annual Rent below
Does this rent contain operating expenses (excluding property taxes and insurance above)?
Annual operating expense (excluding property tax and insurance) portion of Annual Rent above
Annual rent payable
Does the rent increase annually?
Are increases a fixed percent?
Enter annual % increase
Enter annual rent
Annual rent for the term of the lease
Annual Straight-Line Rent Expense
Initial Balance Sheet Impact
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