Leases come up often enough to deserve an answer, and the honest one is that Undebt.it has no lease account type. A lease behaves differently from a loan: there is no principal, no payoff, and paying extra does not end it sooner. Here are the two ways members handle it.
Option 1: as a fixed term debt
Use this when you want the lease payment inside your monthly budget and on the calendar with everything else.
- Balance: payments remaining multiplied by the monthly payment. Eighteen months at $340 is $6,120.
- Interest rate: 0%. The money factor is already baked into the payment, so adding a rate would double count it.
- Minimum payment: the monthly lease payment.
- Due date: as your lease agreement says.
Log each payment as you make it and the balance walks down to zero in the month the lease ends. One thing to decide: because the plan sees a 0% debt with a small balance, the debt snowball will want to throw extra money at it. That is wasted on a lease, so uncheck Include in payoff plan to keep it visible and budgeted without letting it take your snowball, or use a custom payoff order and put it last.
Option 2: as a bill
If you would rather keep the payoff plan to real debt, put the lease in the Undebt.it+ bill tracker. You get the due date, the reminder and the calendar entry, and the payoff math ignores it entirely. See What is the difference between a debt account and a bill account?
Buyouts and early termination
If you buy the car at the end, that is a new thing: either you pay the residual outright, or you finance it. Add the financing as a normal auto loan with its real balance and rate, and delete or mark off the lease account. Early termination fees are a one time cost, not a debt, unless the dealer rolls them into a loan.
Rent to own and similar
Rent to own furniture and electronics agreements work the same way as option 1: total the remaining payments, enter 0% and let it run down. If the contract has a stated payoff or early purchase price, use that instead of the sum of payments, since paying it early actually saves money there.