Car lease payment calculator
What will a lease cost each month? Enter the price, the down payment, the residual value, the interest rate and the term. You get the monthly payment with tax, and how much of it is the car losing value and how much is the cost of borrowing.
Your lease numbers
These are example numbers. Replace them with the figures on your quote.
The negotiated price, before the down payment.
Cash that lowers the amount you lease.
What the lender expects the car to be worth at the end.
Or a money factor times 2,400.
Use the rate on your quote. It differs by province.
Fees at signing
Acquisition fee, registration and similar.
Check the residual against what the car is really worth later
Pick the car you are leasing. We compare the residual on your quote with what the same model, as old as the lease is long, is listed for today.
Estimated monthly payment
$654.56
36 months, tax included
Where each payment goes
- Amount leased, after the down payment
- $40,000.00
- Residual value at the end
- $24,360.00
- Money factor
- 0.00225
- Car losing value, each month
- $434.44
- Cost of borrowing, each month
- $144.81
- Payment before tax
- $579.25
- Sales tax, each month
- $75.30
- Monthly payment
- $654.56
- Borrowing cost over the whole lease
- $5,213.16
- Everything you pay, down payment and fees included
- $26,164.16
At the end you own nothing unless you buy the car for the residual value. A higher residual lowers your payment, so a car that holds its value leases for less.
An estimate. Some provinces tax the down payment or the total differently, and lenders may add fees. Check every line against your lease quote.
Keep going with Uobo
Uobo is your personal car agent. Text it what you need and it does the research and the checks, asks dealerships about availability, condition and price for you, and helps you decide. This is the text you would send:
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On a computer? Text (289) 819-4586 from your phone and paste what you copied. Standard message rates apply. Reply STOP any time to stop.
How it works
A lease payment has two parts. The first is the car losing value over the lease: the amount you lease, less the residual value, divided by the months. The second is the cost of borrowing: the amount leased plus the residual value, times the money factor.
The money factor is the interest rate divided by 2,400. Sales tax is then added to each payment. Enter the tax rate shown on your quote, because rates and rules differ by province.
Your privacy comes first. What you enter stays on your device unless you choose to text it to Uobo.
Example: a $42,000 car, 36 months
With $2,000 down, a 58% residual, a 5.4% rate and 13% tax, the payment is about $654.56 a month. Before tax, $434.44 is the car losing value and $144.81 is the cost of borrowing. Over the lease you pay $26,164 including the down payment and $600 of fees.
What this does not cover
- It is an estimate. Lenders may add fees, and some provinces tax the down payment or the total differently. Check every line against your lease quote.
- The residual value is set by the lender. A higher residual lowers your payment, and it is the biggest number to compare between quotes. The money factor to APR converter turns the lender's rate into a yearly percentage.
- At the end you own nothing unless you buy the car for the residual value. Kilometre limits and wear charges are extra. The lease kilometre overage calculator prices the extra kilometres.
Common questions
How is a car lease payment calculated?
It is the monthly loss in value (the amount leased minus the residual, divided by the months) plus the monthly cost of borrowing (the amount leased plus the residual, times the money factor), with sales tax added.
What is a good residual value for a lease?
Higher is better for your payment. Many leases set it between about 50 and 65 percent of the price for a three-year term, but it depends on the car and the lender. Compare it between quotes for the same car.
Does a bigger down payment lower a lease payment?
It does, but it is often not wise to put much down on a lease. If the car is stolen or written off, the down payment can be lost. Ask what protects it.
Are lease payments taxed in Canada?
In most provinces sales tax is charged on each lease payment, though the rate and any tax on the down payment differ. Use the rate on your quote.