Personal Finance

lease formula calculation in Excel..

  • Last Updated:
  • Feb 8th, 2012 8:19 am
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[OP]
Deal Addict
Dec 29, 2005
1133 posts
52 upvotes
Mississauga

lease formula calculation in Excel..

Please help Excel expert if possible... I would like to do this in excel as i want to play around with any of the variable.... My concern is that my formula is not correct...

Equipment Costs: 275,000
Estimate Mkt. Value at End of Lease: 27,500
Lease Rate: 8%
Lease Terms (Yrs): 5
Payment Periods: 60
Monthly Lease Payments: (5,357) <==PMT(C7/12,C9,C5-C6,C6,1) formula

C7 = 8%, C9 = 60, C5 = 275K and C6=27.5K


I used this website.. and the amount for lease payment is not the same..

http://gecapitalsolutions.ca/en/tools/lease.asp#result

Summary
Payment in Advance
Lease Start Date: 03/01/2012
Interest Rate: 8%
Number of Periods (in months): 60
Total Amount Financed: $ 275,000.00
Total Payments: $ 310,037.40
Monthly Payment: $ 5,167.29
Purchase Option: $ 27,500.00

Thanks in advance...

(Sorry if I posted in the wrong forum....)
4 replies
Deal Expert
Nov 2, 2003
15500 posts
1448 upvotes
GTA
not allowed to ask for help with homework on this forum.
Deal Expert
Nov 2, 2003
15500 posts
1448 upvotes
GTA
mortgage?

*****, please! This is a lease payment question on equipment from Introduction to Canadian Financial Accounting textbook.
Member
Oct 5, 2009
469 posts
40 upvotes
Calgary
oh ok, then it's really easy with excel and the pmt function.. or you can do it the long way and calculate it.

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