Lease cancellation process and system

A system for managing the cancellation of equipment lease contracts on a date prior to the date set forth in the contract comprising

• a database of lease contracts comprising a plurality of account entries, each account entry including lease contract information comprising the name of the lessor, the normal contract lease termination date (Dt), the amount (Pa) and number (Pn) of periodic payments, the remaining time on the contract at termination (Rt), the identity (Ei) and class (Ec) of equipment which is the subject matter of the lease contract;
• a database of all classes of equipment (Ec) owned by the lessor, each entry comprising the identity of the class of equipment, the number of items of the class of equipment presently in inventory, the number of items of the class which are presently leased, the historical utilization rate of the class (Hu), the historical lease rate (Hlr), and the historical time to lease items of the class following return of item of the class to inventory after a previous lease is terminated (Ht), wherein Hu is calculated by determining an average daily utilization rate, the daily utilization rate calculated by dividing the number of items of a class of equipment owned by the lessor by the number of items of that class leased for each day;
• a processor for calculating the value of the remaining periodic payments according to the lease contract (Rv), a breakeven amount (Bv) wherein Bv={Rv−[(Rt−Ht)*Hlr]*Hu;
• and
• a client workstation for inputting data upon termination of a lease comprising the identity (Ei) of the leased item and the reason for the termination of the lease (Rt) and for selecting a termination fee (Ft) ranging from Rv to Bv.