Under the situation of the furious compet.ition among the leasing companies, the important problem for leasing company's management is to determine lease charge on each lease contract suitably from the managemmt viewpoint. A lease charge is considered to be suitable when the leasing company can get an appropriate profit through the contract. But quite lot of leasing companies adopt full payout method for the lease charge determination. It may not be desirable method in the above mentioned situation because the comparative high lease charge makes its competitive power down. So, it is important for leasing company to determine suitable lease charges which satisfy both the leasing company's need and its client requirements. This paper proposes lease charge determination method for leasing company based on the analysis. The method which we propose in this paper has two eminent characteristics. One of them is that the can be treated probabilistically. The other is that the concept of two profit levels (the nect,ssary profit level as minimum necessary profit and the sufficient profit level as maximum obtainable profit) is introduced as the lease charge determination criterion. The advantages of this method are as follows: (1) t.he lease charge which satisfies given conditions can be determined by using the disposal price distribution of the lease object, (2) the suitable lease charge can be given in the form of a certain range which makes the lease charge negotiation with its client flexible. In this paper, firstly, we explain the lease charge determination method, secondly, we give the lease charge determination procedures, thirdly. we discuss some characteristics of this method and finally, we show numerical examples. furious. Under the situation of the furious competition among the leasing companies, the impor tant problem for leasing company's management is to determine lease charge on each lease contract suitably from the management Viewpoint. A lease charge is considered to be suitable when the leasing company can get an a.ppropriate profit through the contract. But quite lot of leasing companies adopt full payout method for the lease charge determina tion. This is the method which lease charge is determined on the basis of the estimation that the disposal price of an object on lease is zero. This method is leasing comp,my's avertion method in the sense that it averts risks by setting lease charge high. It may not be desirable method in the above mentioned situation because the comparative high lease charge makes its competitive power down. So, it is important for leasing company to determine suitable lease charges which satisfy both the leasing company's need and its client requirements (see Fig.I). The leasing company essentially has the character of risk business in the sense that the (the profit or loss) of leasing contract is mainly caused by the disposal price of the object on lease which is changed by the occurrences of technological advances, fluctuation of expenses and changes in economic conditions. So, in order to determine lease charge suitably, the must be considered probabilio·jcally and it must be determined by rit:k