Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

How to Calculate Capital Lease Interest Rates

By Motley Fool Staff – Updated Apr 23, 2025 at 12:33PM

Key Points

  • Companies may lease assets to optimize financial terms and manage balance sheets.
  • Capital lease interest can be computed using the IRR function in a spreadsheet.
  • Adjust IRR formula for payment frequency to get correct annual interest rates.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.