Auto Lease Formula

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Auto Lease is a contractual agreement between a lessee and a lessor that allows the lessee to use a vehicle for a specified period in exchange for regular payments. Check FAQs
AUL=(C-RVELTL+(C+RVELT)M)
AUL - Auto Lease?C - Capitalised Cost?RVELT - Residual Value at End of Lease Term?L - Term of Lease Period?M - Money Factor?

Auto Lease Example

With values
With units
Only example

Here is how the Auto Lease equation looks like with Values.

Here is how the Auto Lease equation looks like with Units.

Here is how the Auto Lease equation looks like.

53201.8182Edit=(200Edit-180Edit11Edit+(200Edit+180Edit)140Edit)
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Auto Lease Solution

Follow our step by step solution on how to calculate Auto Lease?

FIRST Step Consider the formula
AUL=(C-RVELTL+(C+RVELT)M)
Next Step Substitute values of Variables
AUL=(200-18011+(200+180)140)
Next Step Prepare to Evaluate
AUL=(200-18011+(200+180)140)
Next Step Evaluate
AUL=53201.8181818182
LAST Step Rounding Answer
AUL=53201.8182

Auto Lease Formula Elements

Variables
Auto Lease
Auto Lease is a contractual agreement between a lessee and a lessor that allows the lessee to use a vehicle for a specified period in exchange for regular payments.
Symbol: AUL
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Capitalised Cost
Capitalised Cost refers to the cost of acquiring an asset that is recorded on a company's balance sheet as a capital expenditure rather than being expensed immediately.
Symbol: C
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Residual Value at End of Lease Term
Residual Value at End of Lease Term refers to the estimated value of the leased asset after the lease agreement.
Symbol: RVELT
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Term of Lease Period
Term of Lease Period refers to the duration for which the lease agreement is in effect.
Symbol: L
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Money Factor
Money Factor is a component used in calculating the monthly lease payments for a leased asset.
Symbol: M
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

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How to Evaluate Auto Lease?

Auto Lease evaluator uses Auto Lease = ((Capitalised Cost-Residual Value at End of Lease Term)/Term of Lease Period+(Capitalised Cost+Residual Value at End of Lease Term)*Money Factor) to evaluate the Auto Lease, Auto Lease means renting the asset for a specific and limited time duration rather than buying it. Auto Lease is denoted by AUL symbol.

How to evaluate Auto Lease using this online evaluator? To use this online evaluator for Auto Lease, enter Capitalised Cost (C), Residual Value at End of Lease Term (RVELT), Term of Lease Period (L) & Money Factor (M) and hit the calculate button.

FAQs on Auto Lease

What is the formula to find Auto Lease?
The formula of Auto Lease is expressed as Auto Lease = ((Capitalised Cost-Residual Value at End of Lease Term)/Term of Lease Period+(Capitalised Cost+Residual Value at End of Lease Term)*Money Factor). Here is an example- 53201.82 = ((200-180)/11+(200+180)*140).
How to calculate Auto Lease?
With Capitalised Cost (C), Residual Value at End of Lease Term (RVELT), Term of Lease Period (L) & Money Factor (M) we can find Auto Lease using the formula - Auto Lease = ((Capitalised Cost-Residual Value at End of Lease Term)/Term of Lease Period+(Capitalised Cost+Residual Value at End of Lease Term)*Money Factor).
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