Car Lease Calculator Canada 2025

Use this free lease calculator to estimate your monthly car lease payment in Canada. Enter the vehicle's selling price, residual value, money factor (lease rate), and term to see your payment.

Calculate Your Lease Payment

Monthly Payment (before tax)
Monthly Payment (with tax)
Total Lease Cost

How Car Leases Are Calculated in Canada

A Canadian car lease payment has two components:

  1. Depreciation charge: (Adjusted cap cost - Residual value) / Lease term. This covers the vehicle's value loss over the lease.
  2. Finance charge: (Adjusted cap cost + Residual value) x Money factor. This is the interest component of the lease.

These two are added together to get the pre-tax monthly payment. Provincial taxes are then applied to each payment.

What Is the Money Factor?

The money factor is the lease equivalent of an interest rate. To convert it to an approximate APR, multiply by 2,400. For example:

Dealers don't always disclose the money factor — you can ask for it directly or look it up on manufacturer lease programs. A lower money factor means lower monthly payments.

Residual Value Explained

The residual value is what the manufacturer predicts the vehicle will be worth at the end of the lease. This is set by the manufacturer's leasing arm and cannot be negotiated. A higher residual value means lower monthly payments — because you're financing less depreciation.

Vehicles with historically strong resale values (Honda, Toyota, Subaru) tend to have higher residuals and therefore lower lease payments relative to price.

Mileage Limits and Overage Fees

Annual Km AllowanceOverage Fee (typical)
16,000 km/yr$0.10–$0.20/km over
20,000 km/yr$0.12–$0.25/km over
24,000 km/yr$0.15–$0.30/km over

If you regularly drive more than 20,000 km/year, consider financing instead — excess mileage fees can add thousands to your total lease cost.

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Last updated: March 2025. Calculator results are estimates. Actual lease payments depend on exact manufacturer programs and dealer terms.