Lease Rate Factor (LRF)
The multiplier used to calculate monthly lease payments based on equipment cost.
Detailed Explanation
The Lease Rate Factor is a decimal number (typically 0.020-0.035) that, when multiplied by the equipment cost, determines the monthly lease payment. For example, a $10,000 copier with a 0.025 LRF would have monthly payments of $250. The LRF is determined by lease term length, creditworthiness, interest rates, and residual value. Lower LRFs mean lower monthly payments. A 60-month lease typically has lower rates than 36-month leases due to longer payment periods.
Examples
- 36-month lease: ~0.033 LRF
- 48-month lease: ~0.027 LRF
- 60-month lease: ~0.023 LRF
- $10,000 copier × 0.025 LRF = $250/month
Related Terms
Cost Per Page (CPP)
The total cost to print a single page, including toner, maintenance, and other consumables.
TCO (Total Cost of Ownership)
The complete cost of owning a copier, including purchase price, supplies, maintenance, and energy costs over its lifetime.
Fair Market Value (FMV) Lease
A lease where monthly payments are lower, but you must buy, return, or refinance the equipment at fair market value at lease end.
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