Car Lease Calculator

Estimate the monthly payment of a car lease from the price, down payment, residual value, length and interest rate. Enter your values; the result updates as you type, with the method shown below.

About this calculator

With a car lease, you pay for the car’s loss of value during the contract plus a finance charge, not for the whole car. At the end you return the car or buy it at the residual value set in the contract.

Enter the vehicle price, the down payment, the residual value, the rate and the duration. The calculator shows the monthly payment, split between depreciation and finance, the total of payments and the buy-out price.

When to use it

  • Comparing leasing with buying on credit.
  • Checking a lease payment quoted by a dealer.
  • Seeing how the residual value changes the payment.
  • Estimating the cost of buying the car at the end.

How to read the result

A higher residual value lowers the payment, because you pay for less depreciation, but the buy-out price at the end rises.

Insurance, maintenance and mileage limits are not included. Exceeding the mileage limit usually costs a fee per extra kilometre or mile.

Mistakes to avoid

  • Comparing only the monthly payment with a car loan.
  • Underestimating your yearly mileage.
  • Forgetting end-of-lease charges for wear and tear.

Formula

Payment = (cost − residual) / n + (cost + residual) × rate / 24

Worked example

30,000 car, 3,000 down, 50% residual, 36 months at 5%: about 420.83 a month.

Frequently asked questions

What is the residual value?

The value of the car at the end of the lease, set by the lessor.

Lease or buy?

Leasing lowers the payment but you do not own the car at the end.

Lease or buy?

Leasing suits drivers who change cars often; buying is usually cheaper over many years.

What is the residual value?

The price at which you can buy the car at the end, set at the start of the contract.

Can I end a lease early?

Usually at a high cost; read the early termination terms.

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Results are estimates for information only. Check important figures with a professional.