residual value
Remaining asset amount
Residual value is what something is worth after depreciation or at the end of its useful life.
In leasing, it's the projected value of an asset when the lease expires: The car's residual value determines your monthly payment.
In accounting, it's the expected salvage value when an asset is fully depreciated.
Higher residual values mean lower lease costs, since you're financing less of the asset's total value.
- depreciationAsset value reduction over time
- straight lineUndeviated continuous path
- amortizationGradual debt reduction schedule
- fixed assetsLasting business property
- lease termAgreed rental period length
appraisal · obsolescence · useful life · lease payments · scrap · rental agreement · maintenance costs · capital expenditure · payment schedule · leftover · bottom dollar · estimate · accounting · closing the books · recovery · asset · worth · terminal
residual valuepurchase price
Money paid for acquisition
acquisition cost · cost basis · sticker price · face value · replacement cost