Lease is a written agreement under which a property owner allows a tenant to use the property for a specified period of time or duration and rent.
Step 1: Monthly Depreciation Charge
(CC – RV) / M
Step 2: Monthly Finance Charge
(CC + RV) * MF
Step 3: Total Monthly Charge (plus tax)
(Monthly Depreciation Charge + Monthly Finance Charge) * LST
MF: The Money Factor. (You can find out what your interest rate is by multiplying the money factor by 2400)
RV: Residual Value. What the car is worth at lease-end.
CC: The Capitalized Cost AKA Sale Price.
LST: Local Sales Tax.
M: Term of the lease (24,36,48,etc)