What is a lease amortization schedule?

Lease amortization refers to the process of repaying an operating or finance leased asset over the course of time. Real estate professionals employ a lease amortization schedule in order to amortize the principle of the lease over the lease term utilizing projected payments calculated on a straight-line basis for lease expenses.

What is lease amortization?

Lease amortization is the process of paying down an operating or finance leased asset over time. We use a lease amortization schedule to amortize projected payments on a straight-line lease expense basis towards the principle of the lease throughout the lease term.

How do I calculate a monthly lease liability amortization schedule?

With these inputs, we'll calculate the monthly lease liability amortization schedule. Create five columns within the Excel worksheet. Those columns will be called Date, Lease liability, Interest, Payment, Closing balance. This data will be taken directly from the lease agreement.

Why is the amortization schedule for a lease liability not decreasing?

The lease liability's closing balance should resolve to zero at the lease's end. Verify that the formulas are selecting the right cells. If they aren't, that would explain why the amortization schedule for the lease liability isn't decreasing to zero.