👉 Leasing math involves calculating the total cost of leasing an asset over its useful life, considering both the periodic payments and any additional costs. The basic formula is Total Cost = Monthly Payment × Number of Months + Interest on Outstanding Balance × Interest Rate × Number of Months. This includes principal payments, interest accrued on the remaining lease balance, and often a termination fee or early repayment penalty. Understanding this helps in comparing lease options, assessing financial impacts, and making informed decisions about asset usage and costs.
