Lease Accounting (ASC 842) Calculator
Calculate right-of-use asset and lease liability under ASC 842.
Inputs
$
years
%
$
$
Results
Right-of-Use Asset
$271,953.53
Lease Liability$264,953.53
Total Lease Cost (Undiscounted)$300,000
Total Interest$35,046.47
Annual ROU Amortization$54,390.71
First Year Interest$13,247.68
Annual Lease Expense$60,000
How to Use This Calculator
- Enter the fixed monthly lease payment and the total lease term in years.
- Input your incremental borrowing rate as the discount rate.
- Enter initial direct costs and any prepaid rent at commencement.
- Review the Right-of-Use (ROU) asset and lease liability amounts for initial recognition.
- Use these figures as the basis for your ASC 842 journal entries at lease commencement.
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