Need FORMULA to calcuate lease

DavidBird

New Member
Joined
Sep 6, 2006
Messages
4
Hi Folks...need a little help.

I'm looking for a formula that will calculate a lease payment.

The variables are:
Price
Residual Value (Future Value)
Term (In years)
Payment Frequency (Annual or Semi - IN ADVANCE)
Interest Rate
Payment

Any assistance would be greatly appreciated.

Regards - David Bird
 

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Workdays for a market open Mon, Wed, Friday?
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Harvey

Well-known Member
Joined
Nov 18, 2004
Messages
953
( (price - residual value) * (1 + (interest/100)) ) / term =
payment per year

Do you mean something like this? rename the variables with cell names and youre done.
 

DavidBird

New Member
Joined
Sep 6, 2006
Messages
4
Hummm....
I entered the formula in the "payment" cell but it STAYS in the cell, in other words the payment cell displays the formula ?
Any suggestions?
Thanks - db
 

R_Stephens

Board Regular
Joined
Dec 23, 2004
Messages
143

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Put an = in front of the formula

=( (price - residual value) * (1 + (interest/100)) ) / term

If that does not work, make sure the cell is not formatted to Text.

Hope it helps

Richard
 

Oaktree

MrExcel MVP
Joined
Jun 20, 2002
Messages
8,010
Office Version
  1. 365
Alternatively, consider using the PMT function. :)
 

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