Car Lease Calculator
Estimate the monthly repayment on a car lease based on the vehicle price, residual value, interest rate and lease term.
Your results
Calculation breakdown
- Repayment
- Repayment amortises (price - present value of residual) over the lease term
Worked example
A $40,000 vehicle with a $16,000 residual at 9% over 3 years costs about $940 a month.
Assumptions
- Excludes on-road costs, GST treatment and establishment fees.
- Assumes a fixed interest rate for the lease term.
How this calculator works
Car leases combine depreciation of the vehicle down to a residual (balloon) value with interest charged on the outstanding balance across the lease term. Enter the vehicle price, expected residual value, interest rate and lease length to estimate the monthly repayment.
Frequently asked questions
What is a residual value?
It is the lender-set value the vehicle is expected to be worth at the end of the lease, which you either pay out, refinance or return the vehicle against.
Does this include GST or on-road costs?
No, enter the drive-away price you intend to finance; GST treatment depends on whether the lease is personal or via an employer novated arrangement.
How is this different from a chattel mortgage?
A lease usually involves the financier retaining some ownership interest and a set residual, while a chattel mortgage gives the business immediate ownership with a mortgage as security.
Results are estimates only and are not financial, tax, legal or credit advice.