A lease is a contract outlining the terms under which one party agrees to rent property owned by another party.
Lease payment is the amount provided by the lease holder on a regular basis to the owner of the property for a specific period of time in exchange for use of the property.
Formula to calculate Lease payment.
![Calculate Lease Payment.](https://www.learntocalculate.com/wp-content/uploads/2020/06/Lease-payment.png)
Depreciation fee is what the lessee pays the lessor for the loss in value of the asset.
Finance fee is a fee representing the cost of credit, or the cost of borrowing.
Sales tax is the state or local tax charged on the sale price.
Example:
An individual leased an apartment from a real estate company. He was charged a depreciation fee of $ 100, a finance fee of $ 50 and a sales tax of $ 30. Calculate her lease payment.
![Calculate Lease Payment.](https://www.learntocalculate.com/wp-content/uploads/2020/06/Lease-payment-2.png)
Therefore, her lease payment is $ 180.