A schedule of lease payments lets you know how many payments you need to make and at what interval to satisfy the terms of a lease. These schedules are sometimes called amortization schedules and account for all of the terms of the lease, including cost, interest and reduction of principal.
Gather the information needed for your schedule. You will need to know the total amount to be paid on the lease, the lease duration, interest rate and how often interest is compounded. If there is a required minimum payment, you will also need to know this information.
Plug the required information into the lease/loan amortization schedule template in a spreadsheet or financial software program. Although different programs are set up in different ways, generally you will be prompted to enter the lease start date, interest rate, how often interest is compounded, payment term and total present value of the lease. Click the payment calculate function in your template. The program will use this information to generate a minimum payment, if you do not already have one.
Complete the amortization table. Most programs will auto-generate an amortization table for you, but if you need to create one yourself include columns for payment date, amount of payment, amount of interest paid, reduction of the principal lease amount and the outstanding balance on the lease after that payment. Likewise, most programs will auto-fill the payment date and payment amount column using the information you already plugged in, but if it does not, plug them in yourself, including one payment per line until the end of the lease term.
Calculate the amortization table by clicking “amortization” tab in your program. The software will fill in the table so you can clearly see how much of your payment is going to principal and interest each month and how each payment impacts the total cost of the lease. You can use this information to change payments if you wish to pay off the lease more quickly or see how interest rate changes could impact your payment schedule.
Lily Welsh is a freelance writer from North Carolina, though she has spent much of her adult life living abroad. She is the About.com Guide to Music Careers, and her work appears frequently in other Web-based and print publications. Welsh has worked in the music industry for 15 years and counting and holds B.A.s in international studies and economics.