🌏 Global Finance

Car Lease Calculator

Calculate monthly car lease repayments and compare leasing vs buying — for Australia, US, UK and more. Includes residual value, total interest, and side-by-side comparison.

Advertisement
🚗
Car Lease Calculator

Calculate lease repayments or compare leasing vs buying — use the tabs below.

🚗 Lease Details
🏦 Loan Details (Buy)
Advertisement

Car Lease Calculator — Australia, US, UK and Global

This free car lease calculator computes monthly lease repayments for any vehicle purchase — in Australia, the US, the UK, and more — based on the vehicle price, interest rate, lease term, and residual (balloon) value. It also includes a lease vs buy comparison tool so you can see the total cost of leasing versus taking out a car loan side by side.

Average car loan rates in Australia were 7.67% p.a. as of July 2026, up from 7.43% in early 2025 following RBA rate movements. Competitive novated lease rates typically sit between 6.5% and 7.5% comparison rate in 2026.

Key Car Finance Figures — Australia 2026

MetricFigureSource / Date
Average car loan interest rate7.67% p.a.Savvy, July 2026
Average car loan amount$34,282money.com.au, 2026
Competitive novated lease rate6.5%–7.5% p.a.Gridly, 2026
Prime borrower rate range6.59%–9.95% p.a.Savvy, July 2026
Typical lease term3–5 yearsIndustry standard

How Is a Car Lease Repayment Calculated?

Financed amount = Vehicle price − Deposit − Residual value
Monthly repayment = PMT(monthly rate, months, financed amount)
Total cost = (Monthly repayment × months) + Residual value + Deposit

The residual value (also called balloon payment) is the agreed value of the car at the end of the lease. A higher residual lowers your monthly repayments but means a larger lump sum is due at lease end — either paid, refinanced, or the car is returned to the lessor.

Car Lease vs Car Loan — Which Is Better?

FeatureCar LeaseCar Loan (Buy)
Monthly repaymentsUsually lower (residual deducted)Usually higher (full price financed)
Own the car?Not until residual is paidYes, from day one
Mileage limitsSometimes appliesNo limits
FlexibilityCan hand back at end of termKeep, sell, or trade at any time
Business useLease payments may be deductibleDepreciation + interest deductible
Total costHigher if residual refinancedLower total if loan paid off
💡 For business owners and employees who salary package, a novated lease may offer additional tax advantages. Novated leases combine the vehicle lease and running costs into pre-tax salary deductions, which can reduce taxable income — particularly for those earning above $45,000 (32.5% tax bracket).

Worked Example — $35,000 Car, 3-Year Lease

A buyer leases a $35,000 vehicle over 3 years at 7.5% p.a. with a 30% residual and no deposit:

  • Residual value: $35,000 × 30% = $10,500
  • Financed amount: $35,000 − $10,500 = $24,500
  • Monthly repayment: approximately $759 per month
  • Total lease payments: $759 × 36 = $27,324
  • Total cost (incl. residual): $27,324 + $10,500 = $37,824
  • Total interest paid: $37,824 − $35,000 = $2,824

Frequently Asked Questions

What is a residual value on a car lease?
A residual value (also called a balloon payment) is the agreed value of the vehicle at the end of the lease term. It is deducted from the financed amount, which lowers your monthly repayments. At the end of the lease, you can pay the residual to keep the car, refinance it, or hand the car back to the leasing company. Typical residuals range from 20% to 40% of the vehicle's original value.
What is the average car loan interest rate in Australia in 2026?
The average car loan interest rate in Australia is 7.67% p.a. as of July 2026, according to Savvy's lending database. For prime borrowers with good credit and property ownership, rates range from 6.59% to 9.95% p.a. Rates have been rising since late 2025 following RBA rate increases.
Is it cheaper to lease or buy a car in Australia?
Leasing typically has lower monthly repayments because you're only financing the depreciation portion of the car's value. However, the total cost of leasing is usually higher than buying if you refinance the residual or lease again at end of term. Buying outright or with a loan gives you full ownership and no balloon payment. For business use, leasing offers different tax deduction benefits — consult your accountant.
How is a car lease repayment calculated?
A car lease repayment is calculated using the PMT (payment) formula: the monthly payment is the amount needed to pay off the financed portion (vehicle price minus deposit minus residual) at the given interest rate over the lease term. The residual is not included in the regular repayments but is due as a lump sum at the end of the lease.
What is a novated lease and how is it different?
A novated lease is a three-way arrangement between an employee, employer, and leasing company. The employer makes the lease repayments from the employee's pre-tax salary, reducing taxable income. It is only available through an employer who offers salary packaging. Our separate novated lease calculator covers this arrangement in detail.
Can I include running costs in a car lease?
Yes — under a fully maintained operating lease (common for business vehicles), running costs such as fuel, insurance, registration, and maintenance can be bundled into the lease payment. This simplifies budgeting but typically increases the total cost compared to managing running costs separately.
Is this car lease calculator free?
Yes — completely free with no registration required. All calculations happen instantly in your browser. This calculator provides estimates for general guidance — confirm exact repayments with your lender or finance broker before signing a lease agreement.
Is my data private?
Yes — all calculations happen in your browser. NerdyTools does not store, transmit, or log any figures you enter. Your financial data never leaves your device.
Advertisement
Scroll to Top