Enter the lease terms and the calculator will estimate the liability present value, right-of-use asset and full amortisation schedule using the effective interest method. It also helps frame issues that may matter during a financial statement audit.
| Period | Payment | Interest | Principal | Balance | ROU Dep. |
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I'll prepare a full IFRS 16 valuation with audit-ready support for your finance team and reporting cycle.
📅 Book a consultation →The calculator applies the effective interest method under IFRS 16. Each payment is split into interest and principal, while the right-of-use asset is depreciated over the lease term.
PV of liability equals the discounted stream of lease payments plus the discounted residual or purchase option value. The discount rate is usually the incremental borrowing rate or the rate implicit in the lease.
Each period allocates part of the payment to interest and the remainder to principal. The closing liability balance is then rolled forward into the next period.
ROU asset equals the lease liability adjusted for initial payments and direct costs. It is typically depreciated on a straight-line basis over the shorter of the lease term and useful life.
IFRS 16 usually lifts EBITDA versus operating lease accounting because the lease expense is reclassified into depreciation and interest. That changes EBITDA even if total cash outflow stays the same.
I'll prepare an IFRS 16 or local GAAP valuation with documentation ready for audit, reporting and month-end close.