How to Calculate Finance Lease Rent

The calculation of rent is mostly based on the average apportionment method and the equivalent annuity method.

1, the average apportionment method is the first agreed interest rate and fee rate to calculate the interest and fee during the lease, and then together with the cost of equipment according to the number of payments to be averaged.

Each payment of rent = [(acquisition cost of leased equipment - the estimated net residual value of leased equipment) + interest during the lease period + fees during the lease period]

2, equal annuity method is the use of the formula for calculating the present value of the annuity is transformed to calculate the rent paid in each period.

Expanded Information

Payment Methods

1, according to the length of the payment interval period, is divided into annual, semi-annual, quarterly and monthly payments.

2. According to the payment at the beginning and end of the period, it is divided into two kinds of rent first and rent later.

3, according to the amount of each payment, divided into equal payment and unequal payment. In practice, the lessee enterprise and the leasing company agreed to pay the rent, most of the post-paid equal amount of annuity.

Financial leasing is a new form of financial service combining physical credit and bank credit generated under the conditions of modernized mass production, and it is a cross-field and cross-sectoral cross-sectoral industry integrating finance, trade and service.

Baidu Encyclopedia-Financial Lease Rent