Useful Life: The period that the asset will be useful (how long is its life?), stated in terms of months.
Capital leases (now “finance”), resemble financed purchases; the lease term spans most of the asset’s useful life. Operating leases resemble rental agreements; the asset is used for a set time with useful life remaining at lease end.
Example: The useful life (life expectancy) of a vehicle is 84 months and the term of the lease is 36 months.
Note: This field is not required in LeaseGuru, but it can be helpful for the Capital vs Operating Test.