How to calculate the total cost of your car lease in Canada
Get the sales price of the car. This is the price that you negotiate with the dealership, not the manufacturer-recommended price. You can find an estimate on sites like the Canadian Black Book.
Subtract the down payment. The down payment is the amount you pay upfront for the car and it reduces the amount left for you to pay.
Subtract the resale price. Also known as the “estimated resale value,” this is what the car is worth at the end of the lease. Typically, this is around 55% of the sale price of the car.
Calculate the interest. Divide the interest rate by the number of payments and multiply the result by the figure you got in step 3.
Calculate the total cost. Add the result to the figure you got in step 3.
Want to know how much to lease a car per month? Divide the total cost by the total number of payments on your lease. To make it much easier, use a lease payment calculator in Canada, such as the government of Canada’s vehicle lease calculator.
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How to calculate the difference between two car lease options
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. For car lease A, we used the Hyundai Venue, and for car lease B, we used the Nissan Versa.
Car lease offer A
Car lease offer B
Sale price
$25,000
$20,000
Estimated resale value
$19,200
$12,950
Down payment
$0
$0
Sales tax
13%
13%
Lease term
3 years
3 years
Interest rate
6.74%
6.79%
Monthly payment
$321.64*
$326.17
Total cost
$11,579.04*
$11,742.12
*Also takes into account costs such as depreciation fees, lease fees and other applicable taxes.
Based on this example, it can cost around $322 per month to lease a $25,000 car, while it can cost around $326 per month to lease a $20,000 car. Lease B actually costs more in this example despite its lower sale price and slightly lower rate because the car loses more value over the lease term.
interest% ÷ number of payments × $car cost = $partial cost
Step 5:
$partial cost + $car cost = $total lease cost
How much is a lease on a $45,000 car?
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
How much is a lease on a $30,000 car?
You can also use a lease payment calculator to figure out how much a lease is on a $30k car, but the following example can guide your expectations. For lease A, we used the Kia Seltos. For lease B, we used the Toyota Corolla.
Car lease offer A
Car lease offer B
Sale price
$30,000
$30,000
Estimated resale value
$18,650
$23,100
Down payment
$0
$0
Sales tax
13%
13%
Lease term
3 years
3 years
Interest rate
5.49%
6.69%
Monthly payment
$481.43
$383.03
Total cost
$17,331.48
$13,789.08
Based on this example, it can cost around $380 to $500 per month to lease a $30,000 car. Even though lease B has a higher APR, it costs less overall because the car keeps more of its value over the term.
How much is a lease on a $70,000 car?
You can use a lease payment calculator to figure out how much a lease is on a $70k car, but here’s another example to guide you. For car lease A, we used the Ford F-150 Lightning. For lease B, we used the Audi all-new Q5 Sportback.
Car lease offer A
Car lease offer B
Sale price
$70,000
$70,000
Estimated resale value
$36,200
$46,000
Down payment
$0
$0
Sales tax
13%
13%
Lease term
3 years
3 years
Interest rate
3.99%
4.48%
Monthly payment
$1,259.29
$996.83
Total cost
$45,334.44
$35,885.88
Based on this example, it can cost around $1,000 to $1,300 per month to lease a $70,000 car. Even though lease B has a higher APR, it costs less overall because the car loses less of its value over the term.
What do these car lease terms mean?
Sale price. The vehicle price can be either the manufacturer-suggested retail price (MSRP) or the price you’ve negotiated. It will be the baseline you use to calculate how much to lease a car per month and the total cost of your lease.
Down payment. Most leases require that you have a down payment that covers at least 10–20% of the vehicle’s value. However, exactly how much to lease a car will depend on your income and creditworthiness — the stronger your application, the smaller your down payment will likely have to be.
Estimated resale value. The estimated residual value is the amount the vehicle will be worth after the lease period ends. It typically accounts for depreciation as well as mileage and average wear and tear.
Sales tax. Sales tax is often bundled in the cost of your lease. The exact amount you pay will depend on both provincial/territorial and federal law.
Lease term. The lease term is the amount of time you’ll be driving — and paying for — your vehicle. Usually, it lasts anywhere from two to four years.
Interest rate. The interest rate will have the most impact on figuring out how much it costs to lease a vehicle. It’s often referred to as the lease factor and will be written as a decimal.
What is the interest rate on car leases?
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%.
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 Canadian lease payment calculator to work out how much you’ll pay.
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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 determine how much a lease can increase by.
Insurance. Your lessor will likely require that you carry full coverage during your lease term. Depending on the make and model of your vehicle — as well as any past accidents — this can add hundreds or even thousands of dollars to the yearly cost of your lease.
Extra mileage. Most leases come with a set number of kilometres you can drive each year, usually around 20,000. If you go over, you may be charged a fee per km.
Wear and tear. If there’s any excessive wear on your vehicle, you may be charged a fee for damages and for potentially reducing the car’s resale value.
Drive-off fees. Also known as the down payment, this is the amount you put down to drive the car off the lot.
Rebates and incentives. Some dealerships offer discounts like rebates to get you to buy their lease.
How much to break a lease depends on the method you choose. Here’s a brief look at the five ways you can break a lease:
Lease buyout: Pay out the remainder of your lease to gain full ownership of the vehicle so you can sell it. To do this, you’ll need to pay a termination fee to end the lease early, which ranges from $200–$500.
Lease rollover: Extend the term of your lease for more time to pay it off.
Trade in: You can trade your vehicle in for a cheaper one to pay off the remaining lease balance or roll it over into your new lease.
Transfer your lease: Find someone else to take over the lease and pay a $50–$500 transfer fee.
Voluntary surrender: Returning the vehicle to the leasing company is typically a last resort, as you’ll be responsible for termination fees, remaining payments and depreciation costs.
Bottom line
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 how much to lease a car in the short and long term, allowing you to find a lease that works with your budget and lifestyle.
Frequently asked questions
Mainstream brands like Toyota, Honda, Mazda and Hyundai are charging between 1.99% and 5.79% for 2025 vehicles.
Luxury brands such as BMW, Audi, Mercedes-Benz and Lexus have more promotional interest rates, starting at 0.49% to 7.94%.
Leasing a Tesla depends on various factors, such as the sale price, APR, down payment and lease term, but you can generally expect to pay between $850 and $3,700 for a Tesla per month.
Leasing a truck depends on multiple factors, such as the sale price, model, APR and lease term. For a $70,000 truck, you can expect to pay over $1,000 a month for a 3-year term.
Leasing a commercial truck varies based on multiple factors, such as the model, sale price, lease term and APR. Generally, you can expect to pay between $800 and $2,500 per month.
Matt Corke is Finder’s head of publishing ventures. Prior to this he was head of publishing for Australia, New Zealand and emerging markets. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time, he has survived the dot-com crash and countless Google algorithm updates.
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Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family.
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