Car Lease Calculator

Monthly lease cost = depreciation + funding. You hand the car back — no ownership.

Usually 3–12× the monthly payment upfront

What the car's worth when you hand it back — the bigger it is, the cheaper the lease

Result

Depreciation cost£361.11
Funding cost£117.88
Monthly lease£478.99
Total lease cost£20,243.50

How it's calculated

  1. 1

    Capitalised cost = £30,000.00 − £3,000.00 initial rental = £27,000.00

  2. 2

    Depreciation = (£27,000.00 − £14,000.00 residual) ÷ 36 months = £361.11/mo

  3. 3

    Funding = (£27,000.00 + £14,000.00) ÷ 2 × 0.575% = £117.88/mo

  4. 4

    Monthly lease = £361.11 + £117.88 = £478.99

  5. 5

    Total = £478.99 × 36 + £3,000.00 upfront = £20,243.50

Car Lease Calculator — FAQs

How is a car lease payment calculated?

You pay for the depreciation (price − residual) spread over the term, plus a funding charge on the average amount the lease company has tied up in the car.

Lease vs PCP?

Leasing (PCH) = pure rental, you always hand it back. PCP = optional ownership via a balloon. Lease monthly costs are often lower because there's no path to ownership built in.

What affects lease cost most?

Residual value — a car that holds its value depreciates less, so you pay less. That's why premium brands sometimes lease cheaper than mainstream ones.

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