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The term Lease Payment, regarding auto leasing, generally refers to the calculation of monthly lease payments when other factors in the lease are already known. In order to calculate an auto Lease Payment, you must first know cap cost (the vehicle price that the lease on which the lease is based), residual value (the estimated lease-end value of the vehicle), money factor (another form of interest rate), and term (length of the lease, in months). Once these factors are known, it is possible to then calculate the Lease Payment by applying a standard lease payment formula to determine the amount of each monthly payment. This can be done manually using this lease payment formula or a simple web-based calculator. In most states, sales tax must also be included with each Lease Payment. An excellent example of a full-function Lease Payment calculator is the Lease Payment Calculator provided by LeaseGuide.com. For more information, see: The Lease Guide
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