Lease or Purchase with Simple Cost per Print Plans

How Do I Discover My APR on a Copier Lease

A reader of our blog called in and has a question:

My lease rate factor shows at .0194 – How do I find out the interest rate I am being charged?

That was interesting because I had a lot of trouble finding people who could answer this question.

What you will need:

Loan Amount (How much is being financed)

Residual Value, what you would pay to keep the copier

Monthly Payment

Months of payment.

 

For given CP and N, one can only solve the following equation for r by numerical means.

Given the rather smooth behavior of this equation, this calculator employs the Newton-Raphson method with an educated initial guess:

An example we could give would be as follows….

Loan Amount (C)

Residual Value (F)

Monthly Payment (P)

Number of Months (N)

 
Interest Rate:8.15139%
Total Payment:$11,640.00
Total Interest:$2,340.00
Detailed Payoff Schedule
Other Scenarios

 

Here is a detailed schedule of payments on this copier:

 

PeriodPaymentPrincipal PartInterest PartBalance
 1$194.00$126.07$67.93$9,873.93
 2$194.00$126.93$67.07$9,747.00
 3$194.00$127.79$66.21$9,619.21
 4$194.00$128.66$65.34$9,490.55
 5$194.00$129.53$64.47$9,361.02
 6$194.00$130.41$63.59$9,230.61
 7$194.00$131.30$62.70$9,099.31
 8$194.00$132.19$61.81$8,967.12
 9$194.00$133.09$60.91$8,834.03
 10$194.00$133.99$60.01$8,700.04
 11$194.00$134.90$59.10$8,565.14
 12$194.00$135.82$58.18$8,429.32
PeriodPaymentPrincipal PartInterest PartBalance
 13$194.00$136.74$57.26$8,292.58
 14$194.00$137.67$56.33$8,154.91
 15$194.00$138.61$55.39$8,016.30
 16$194.00$139.55$54.45$7,876.76
 17$194.00$140.49$53.51$7,736.26
 18$194.00$141.45$52.55$7,594.81
 19$194.00$142.41$51.59$7,452.40
 20$194.00$143.38$50.62$7,309.03
 21$194.00$144.35$49.65$7,164.67
 22$194.00$145.33$48.67$7,019.34
 23$194.00$146.32$47.68$6,873.02
 24$194.00$147.31$46.69$6,725.71
PeriodPaymentPrincipal PartInterest PartBalance
 25$194.00$148.31$45.69$6,577.40
 26$194.00$149.32$44.68$6,428.08
 27$194.00$150.34$43.66$6,277.74
 28$194.00$151.36$42.64$6,126.39
 29$194.00$152.38$41.62$5,974.00
 30$194.00$153.42$40.58$5,820.58
 31$194.00$154.46$39.54$5,666.12
 32$194.00$155.51$38.49$5,510.61
 33$194.00$156.57$37.43$5,354.04
 34$194.00$157.63$36.37$5,196.41
 35$194.00$158.70$35.30$5,037.71
 36$194.00$159.78$34.22$4,877.93
PeriodPaymentPrincipal PartInterest PartBalance
 37$194.00$160.87$33.13$4,717.06
 38$194.00$161.96$32.04$4,555.11
 39$194.00$163.06$30.94$4,392.05
 40$194.00$164.17$29.83$4,227.88
 41$194.00$165.28$28.72$4,062.60
 42$194.00$166.40$27.60$3,896.20
 43$194.00$167.53$26.47$3,728.66
 44$194.00$168.67$25.33$3,559.99
 45$194.00$169.82$24.18$3,390.18
 46$194.00$170.97$23.03$3,219.20
 47$194.00$172.13$21.87$3,047.07
 48$194.00$173.30$20.70$2,873.77
PeriodPaymentPrincipal PartInterest PartBalance
 49$194.00$174.48$19.52$2,699.29
 50$194.00$175.66$18.34$2,523.63
 51$194.00$176.86$17.14$2,346.77
 52$194.00$178.06$15.94$2,168.71
 53$194.00$179.27$14.73$1,989.44
 54$194.00$180.49$13.51$1,808.96
 55$194.00$181.71$12.29$1,627.24
 56$194.00$182.95$11.05$1,444.30
 57$194.00$184.19$9.81$1,260.11
 58$194.00$185.44$8.56$1,074.67
 59$194.00$186.70$7.30$887.97
 60$194.00$187.97$6.03$700.00

 

Make your life easier by asking your copier rep to provide all 4 items so you can compute your copier lease APR!