The monthly lease payment calculator can be used to calculate the expected monthly repayment on a lease. The main reason that leasing generally yields lower monthly payments is because the capital parts of the payments only have to add up to the difference between the loan and the residual value.
Notation and Units
Financial Assessment
The above financial calculator does not account for all mathematical and financial theory limitations. The financial calculators have been provided with educational purposes in mind and should be used accordingly. As with all calculations care must be taken to keep consistent units throughout with examples of units which should be adopted listed below:
Notation
- C = Loan amount under consideration, as a dollar value
- F = Residual value, as a dollar value
- R = Annual interest rate, as a percentage
- N = Repayment Periods, in months
- P = Monthly repayment, as a dollar value
