How do I calculate a lease?

[CASuziqQ]

I have a lease and used the Loan Calculator template, but when it came time
to balance at the end of the year I was several thousand dollars off what the
lender said the balance was...

The amount amount I used is 71,445 @ 8.88% with monthly payments of 1,479.28
for 60 months. But then I read the agreement (imagine that) and it showed
66,000 financed @ 8.88% plus sales tax of 112.75 per month.

Any suggestions? By the way I am an intermediate user so please don't get
tooooo technical.

Thank you very much
CASuziqQ

 

[Ron Rosenfeld]

I have a lease and used the Loan Calculator template, but when it came time
to balance at the end of the year I was several thousand dollars off what the
lender said the balance was...

The amount amount I used is 71,445 @ 8.88% with monthly payments of 1,479.28
for 60 months. But then I read the agreement (imagine that) and it showed
66,000 financed @ 8.88% plus sales tax of 112.75 per month.

Any suggestions? By the way I am an intermediate user so please don't get
tooooo technical.

Thank you very much
CASuziqQ

How long is the lease term?

If it is, for example, 5 years, and you are paying $112.75/month for that
entire time, seems like a high sales tax (112.75*60/66000 = 10.25%)

In any event, use the $66000 and subtract 112.75 from the payment.

That means your payments on the loan are 1366.53

Assuming a 5 year loan, the following will give the balance after 12 payments
(given a loan amount of 66000, interest at 8.88% per year, and a term of 5
years):


=Amt + CUMPRINC(Rate/12,Term*12,Amt,1,12,0)

If the CUMPRINC function is not available, and returns the #NAME? error,
install and load the Analysis ToolPak add-in.

How?

On the Tools menu, click Add-Ins.
In the Add-Ins available list, select the Analysis ToolPak box, and then click
OK.
If necessary, follow the instructions in the setup program.


--ron

 

[CASuziqQ]

Ron

Thank you for your quick response, but this did not answer my question
completely.

I am trying to get a schedule (loan calculator type) that will give me the
monthly breakdown of my payments.

Thank you

 

[Ron Rosenfeld]

Ron

Thank you for your quick response, but this did not answer my question
completely.

I am trying to get a schedule (loan calculator type) that will give me the
monthly breakdown of my payments.

Thank you

You can download the loan amortization template from office.microsoft.com

I would use $66,000; 8.8% and 5 years for the terms of the loan. (Taxes are
extra).

All the equations are readily viewable, and you could modify the results to add
on the tax payments.


"Loan amortization schedule"
http://office.microsoft.com/en-us/t...x?pid=CT101172751033&AxInstalled=1&c=0&CTT=42

Find more templates (including more Schedules templates) at
http://office.microsoft.com/templates


--ron

 

[CASuziqQ]

I have used the templates; I guess my problem is not understanding how the
sales tax portion of the lease works.

Thank you for all your help Ron!

 

[Ron Rosenfeld]

I have used the templates; I guess my problem is not understanding how the
sales tax portion of the lease works.

Thank you for all your help Ron!

I've never leased anything, and I haven't reviewed your contract, so it's hard
to tell.

From what you wrote, it seems as if they are just adding the tax payment onto
the lease payment, and that the tax payment is the same for the entire duration
of the lease.

If that is the case, then you could treat these as two separate payments

1. The lease payment, which is broken down into interest and principal.
2. The tax payment, which is completely separate.
--ron

 

[CASuziqQ]

Thank you for all your help Ron!

I've never leased anything, and I haven't reviewed your contract, so it's hard
to tell.

From what you wrote, it seems as if they are just adding the tax payment onto
the lease payment, and that the tax payment is the same for the entire duration
of the lease.

If that is the case, then you could treat these as two separate payments

1. The lease payment, which is broken down into interest and principal.
2. The tax payment, which is completely separate.
--ron