Need FORMULA to calcuate lease

[DavidBird]

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

 

[Harvey]

( (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]

I THINK that's it....I'll give it a try...
db

 

[DavidBird]

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]

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]

Alternatively, consider using the PMT function.

 

[DavidBird]

GOT IT! Thanks, gentlemen...
David Bird