See http://fieldinet.com/saab/lease.html for background information.

MSRP
Negotiated Price
Lease Incentive
Tax Rate on Lease Incentive
Capitalized Cost Reduction
Sales Tax Rate
Tax Rate on Lease Payments
Money Factor
Bank Interest Rate on Savings
License/Registration Fee
Bank Fee
Other Fee
Other Fee
Other Fee
Allowed Mileage Options

$
$
$
$

$
$
$
$
$

Mileage Option You Chose

CHANGE THE DATA IN YELLOW CELLS AS NECESSARY

40,970.00
38,128.00
2,000.00 If no incentive is available, enter 0.
0% Most believe NO tax should apply, but some dealers assess it. It will increase your payment.
999.00 Similar to down payment in a loan transaction.
8% Will be applied to cap cost reduction and end of lease purchase.
8% Some states don't tax lease payments. In CA, your sales tax rate applies.
0.000540 FYI, this is similar to a loan interest rate of:
1.296
3% Used in comparison below Adjust (reduce) for taxes (bec. you pay tax on this interest).
550.00 You can either estimate this or leave it out.
495.00 Almost all leases require a bank fee.
- If not applicable, enter 0.
- If not applicable, enter 0.
- If not applicable, enter 0.
Miles
% Used to Calculate Residual Value
10,000
49%
12,000
48%
15,000
47%
12,000
48%
Re-enter from above.

LEASE CALCULATIONS -- DO NOT CHANGE CELL VALUES (unless you know what you're doing)!
First we'll calculate the monthly payment.
Capitalized Cost
$36,128.00 Negotiated Price minus Incentive.
Capitalized Cost Reduction
$999.00 Taken from yellow cells above.
Adjusted Capitalized Cost
$35,129.00 CapCost minus CapCostReduction. Think of this as the amount financed.
Residual Value
$19,665.60 MSRP times % from "miles" cells. This is the price you pay for car at end of lease.
Total Lease Amount
$15,463.40 AdjCapCost minus Residual Value.
Base Payment (36 months)
$429.54 Total Lease Amount divided by 36.
Rent Charge (similar to interest)
$29.59 The formula is ( (AdjCapCost + ResidVal) * MoneyFactor ).
Tax
$36.73 Tax on Base Payment and Interest.
Total Monthly Payment
$495.86 Base Payment plus Tax.
Next we'll calculate the total cost of the car if you buy it at lease end.
$2,619.78 Includes one payment, all fees, and CapCostReduction (incl. Tax on CapCostReduction).
$17,355.04 Only 35 here; the drive off includes 1. FYI, 36 pmts = $17,850.90
$19,665.60 Just copied from above for convenience
$1,573.25 Based on tax rate above.
$41,213.66 Add the 4 above entries together.

Drive-off
Additional Payments
Residual Value
Tax on Residual Value
Total Cost

Price
Tax
License/Registration Fee
Total Cost

$
$
$
$

38,128.00
3,050.24
550.00
41,728.24

What if you bought the car (paid cash)?

Negotiated Price from above. Assumes incentive does not apply to purchase.
Based on tax rate above.
Taken from above.
Sum of these three items.

Cost to Lease then Buy

Cost to Buy Outright
Difference
Interest Earned
Difference Counting Int Earned

$
$
$
$
$

41,213.66
41,728.24
(514.58)
2,874.64
(3,389.21)

Compare lease to outright purchase.

Cost counting (minus) Interest Earned (see below):
$38,339.03
Taken from above.
Positive number means lease is more expensive; negative means lease is cheaper.
Interest earned (money saved) by not paying up front (see Interest Earned Worksheet).
Positive number means lease is more expensive; negative means lease is cheaper.

Month
Principal
1
$ 39,108.46
2
$ 38,710.37
3
$ 38,311.29
4
$ 37,911.21
5
$ 37,510.13
6
$ 37,108.05
7
$ 36,704.96
8
$ 36,300.87
9
$ 35,895.76
10
$ 35,489.64
11
$ 35,082.51
12
$ 34,674.35
13
$ 34,265.18
14
$ 33,854.99
15
$ 33,443.77
16
$ 33,031.52
17
$ 32,618.24
18
$ 32,203.93
19
$ 31,788.58
20
$ 31,372.19
21
$ 30,954.76
22
$ 30,536.29
23
$ 30,116.77
24
$ 29,696.21
25
$ 29,274.59
26
$ 28,851.92
27
$ 28,428.19
28
$ 28,003.40
29
$ 27,577.55
30
$ 27,150.64
31
$ 26,722.66
32
$ 26,293.60
33
$ 25,863.48
34
$ 25,432.28
35
$ 25,000.00
36
$ 24,566.65
TOTAL INTEREST

Interest
INTEREST RATE:
3% Taken automatically from Lease Calculation Worksheet.
$
97.77 First Principal amount is the total cost to buy outright, minus lease drive-off, taken from the Lease Calculation Worksheet.
$
96.78 This is intended to estmate how much interest you will earn on your money if you lease instead of buying.
$
95.78 Principal = previous month's principal, plus interest earned, minus the lease payment made during the month.
$
94.78
$
93.78
$
92.77
$
91.76
$
90.75
$
89.74
$
88.72
$
87.71
$
86.69
$
85.66
$
84.64
$
83.61
$
82.58
$
81.55
$
80.51
$
79.47
$
78.43
$
77.39
$
76.34
$
75.29
$
74.24
$
73.19
$
72.13
$
71.07
$
70.01
$
68.94
$
67.88
$
66.81
$
65.73
$
64.66
$
63.58
$
62.50
$
61.42
$ 2,874.64