Car Lease Calculator Canada
Calculate your monthly lease payments with Canadian province-specific taxes included.
We'll calculate accurate taxes and provide province-specific information
HST: 13.0%
Lease Details
Reduces monthly payment but you won't get this back
Most common in Canada: 36-48 months
Excess km typically cost $0.10-$0.25/km
50% of MSRP - Higher residual = lower payment
Money Factor: 0.00187 | Canadian average: 3-6% APR for leases
Sales Tax (ON)
13.00%
Applied to monthly payments only (not down payment)
Typical in Canada: $400-$800
Monthly Lease Payment
per month for 36 months
Total Depreciation
$15,000
What you're paying for
Total Lease Cost
$23,764
Including down payment
Effective APR
4.50%
Money Factor: 0.00187
💰 Payment Breakdown
Capitalized Cost: $32,500 = Vehicle ($35,000) - Down Payment ($3,000) + Fees ($500)
💡 Lease Summary
- • You'll pay $23,764 over 36 months
- • At end of lease, car is worth ~$17,500
- • You can buy it out, return it, or lease a new car
- • Annual mileage limit: 20,000 km
Understanding Leasing in Canada
What is a Lease? You're essentially renting the car for a set period. You pay for the depreciation (loss in value) plus interest.
Pros: Lower monthly payments than loans, drive a new car every few years, less maintenance costs (warranty coverage).
Cons: No ownership at the end, mileage limits (~20,000 km/year in Canada), fees for excess wear and tear.
Canadian Tax: Unlike the US, in Canada you pay tax on each monthly payment, not the full vehicle price upfront.
End of Lease Options: Return the car, buy it for the residual value, or lease/buy a new one.
Lease vs Finance - Which is Right for You?
Consider Leasing If:
- ✓ You want lower monthly payments
- ✓ You like driving a new car every few years
- ✓ You drive under 20,000 km/year
- ✓ You want warranty coverage throughout
- ✓ You don't want to deal with selling the car
Consider Financing If:
- ✓ You want to own the car
- ✓ You drive more than 20,000 km/year
- ✓ You keep cars for 5+ years
- ✓ You want to modify or customize your car
- ✓ You want no mileage restrictions
Frequently Asked Questions
How do I calculate my monthly car lease payment in Canada?
Monthly lease payments are calculated based on the vehicle price, residual value (what the car is worth at lease end), money factor (interest rate), lease term, and your province's taxes. Our calculator handles all these factors automatically.
What is residual value in a car lease?
Residual value is the predicted value of the vehicle at the end of your lease term. A higher residual value means lower monthly payments because you're only paying for the depreciation during your lease period.
Is it better to lease or finance a car in Canada?
Leasing offers lower monthly payments and allows you to drive a new car every few years. Financing costs more monthly but you own the car at the end. Leasing is better if you drive under 20,000 km/year and like new vehicles. Financing is better if you want to own the car long-term.
What happens if I exceed my mileage limit on a lease?
In Canada, exceeding your lease mileage limit typically costs $0.10 to $0.25 per extra kilometer. If you know you'll drive more, negotiate a higher mileage allowance upfront as it's cheaper than paying excess fees.