sluday

Does anyone one know how to figure out a lease rate? What numbers do i need to have and please tell me the right calculations. Thanks

micvog

Are you trying to calculate the money factor or the lease payments? The lease payment calculations are:

Lease Payment = Monthly Service Charge + Monthly Depreciation + Sales Tax
where
Monthly Service Charge = (Net Cap + Residual) * Money Factor
Monthly Depreciation = (Net Cap - Residual) / Term
Sales Tax may not apply in your location

You can use Goal Seek in Excel to determine the Money Factor if you have the other variables. The Money Factor can be approximated to an interest rate by multiplying it by 24 (where 6% would be .06).

CGTSX2004

iTrader: (1)

One correction, the money factor value is the whole number value of the interest rate divided by 2400.

So for a 6% interest rate, the money factor equivalent is 0.0025