Assign Equation Lease For Free

When calculating a lease, we use money factor instead of interest rate, but the conversion is easy: divide interest rate by 2400. Therefore our 5.0% APR interest rate becomes . 0021 lease money factor. Residual value is simply the expected lease-end value of the vehicle, $13,000, after depreciation.

For example, a 3 year warranty is usually stated as 3 years OR 36,000 miles which means 12,000 miles a year. Even a conventional 15,000 miles-a-year lease will exceed the 36,000 mile warranty and an extended mileage lease will exceed it even more.

Rent Charge = (Net Capitalized Cost + Residual) × Money Factor A Rent Charge requires you to add both the Net Capitalized Cost of the vehicle to the Residual before you multiply it by your Money Factor (for more information on determining Money Factors, see Leasing Basics) Many people think that adding both the Net

You can use the lease charge to calculate the money factor with this formula: Money Factor = Lease Charge / (Capitalized Cost Residual Value) Lease Term. Once you have the money factor, you can multiply it by 2,400 to convert it to an interest rate.

The portion of your base monthly payment that is not depreciation or any amortized amounts. This charge is similar to interest on a loan. The rent charge is usually determined by using a money factor (sometimes called a lease factor).

Calculate the number of miles that you think you'll drive every year. If you're wondering how many miles per year you should choose when leasing a car, your answer lies in some basic calculations. You can get a rough estimate by adding up the total miles that you normally drive on a weekly basis.

First, let's look at the basics - the five figures you'll need in order to calculate a monthly lease payment:Residual Value = (MSRP) x (Residual Percentage)Monthly Depreciation = (Adjusted Capitalized Cost - Residual Value) / Term.Monthly Rent Charge = (Adjusted Capitalized Cost + Residual Value) x (Money Factor)More items...