General car lease calculation summary
Steps 1-3:
$car sales price − $down payment − $resale price = $car cost
Step 4:
interest% ÷ number of payments × $car cost = $partial cost
Step 5:
$partial cost + $car cost = $total lease cost
Want to know how much you’ll pay each month? Divide the total cost by the number of payments on your lease. To make it easier, use a lease payment calculator in Canada to work out exactly how much your lease will cost.
When you’re calculating different car leases to see which will work better for your budget, you can use these examples to help guide your expectations:
Car lease offer A | Car lease offer B | |
---|---|---|
Sale price | $25,000 | $20,000 |
Estimated resale value | $16,000 | $12,000 |
Down payment | $2,000 | $1,500 |
Sales tax | 13% | 13% |
Lease term | 3 years | 4 years |
Interest rate | 4.90% | 6.90% |
Monthly payment | $309.28* | $252.07* |
Total cost | $11,134.08* | $12,099.36* |
*Also takes into account costs such as depreciation fees, lease fees and other applicable taxes.
$car sales price − $down payment − $resale price = $car cost
interest% ÷ number of payments × $car cost = $partial cost
$partial cost + $car cost = $total lease cost
You can use a lease payment calculator in Canada to work out the cost of a $45,000 car lease. We estimated that it could cost between $683.86 and $697.46 per month to lease a $45,000 car. As you can see in the table below, the lease term and interest rate you get can both have a major impact on the total cost of leasing a car.
Car lease offer A | Car lease offer B | |
---|---|---|
Sale price | $45,000 | $45,000 |
Estimated resale value | $25,000 | $20,000 |
Down payment | $5,000 | $5,000 |
Sales tax | 13% | 13% |
Lease term | 3 years | 4 years |
Interest rate | 6.99% | 7.99% |
Monthly payment | $683.86 | $697.46 |
Total cost | $24,618.96* | $33,478.08 |
The interest rate you’re charged on a car lease will depend on what you can qualify for based on factors like your credit score and income. In general, you can expect to pay a car lease interest rate of anywhere between 3% and 15%. If you have an excellent credit score and sizable income, you may even be eligible for a 0% interest rate for a set amount of months on your car lease.
The best way to find out what interest rates you’re eligible for on your car lease is to discuss your options with the dealership you’re interested in. You can then use a lease payment calculator in Canada to work out how much you’ll pay.
When you decide to lease a car, there are other factors to consider than just the interest rate and monthly payment. Insurance, extra mileage and excessive wear can all increase the price of your vehicle.
If you prefer to be behind the wheel of the latest car model or only plan on driving a few thousand kilometres each year, a car lease might be right for you. But using a car lease calculator can help you work out the cost of a car lease in the short and long term, allowing you to find a lease that works with your budget and lifestyle.
Find out more about what you’ll need to do to take over a car lease in Canada.
Read through our helpful guide and weigh the pros and cons to decide if leasing a car is the right option for you.
Discover these 5 options for when your vehicle’s lease is up.
Consider leasing a used car if you’re on a budget or want to drive a luxury car for less.
Avoid the upfront costs that come with buying a car for your business. Learn about leasing your business’s fleet of vehicles.