Car Lease Calculator by Country

How leasing works and what the monthly cost includes in the US, UK, Canada and Australia — with examples.

Leasing is structured differently around the world, and what your monthly figure includes can vary as much as the currency. This page walks through how a lease is built in the United States, the United Kingdom, Canada and Australia, with an example so you can see why the same car can cost a different amount to lease in each place.

United States

In the US a consumer lease is usually a closed-end lease. You pay for the depreciation over the term plus a money-factor charge, and at the end you return the car. Sales tax is the twist: many states charge tax on each monthly payment rather than on the full price, so the rate you enter is applied to the stream of payments. A $35,000 car with a 58% residual, 0.0024 money factor, 7% state tax, $2,500 down and 36 months is roughly $430 a month including tax. State rules differ, so the exact tax treatment depends on where you live.

United Kingdom

The UK equivalent is Personal Contract Hire, commonly called PCH. Quotes are normally inclusive of VAT at 20%, so there is no separate sales-tax line the way there is in many US states. You pay an initial rental followed by fixed monthly rentals and hand the car back at the end. A £32,000 car with a 55% residual, a money factor equivalent to about 5.5% APR, and 36 months is roughly £430 a month including VAT. Because VAT is baked in, the headline number is the number you pay.

Canada

Canadian leases apply provincial sales tax on top of the price, and the rate depends on the province — some use a single HST, others separate GST and PST. The lease math is the same capitalization-and-residual model as the US, but the tax is calculated differently. A C$40,000 car with a 57% residual, 0.0025 money factor, 13% combined tax, $3,000 down and 36 months is about C$520 a month with tax. Always check your provincial rate, because it changes the total more than the money factor does.

Australia

Australia often uses a novated lease, which is a salary-packaging arrangement: lease payments come out of pre-tax income, and fringe-benefits tax applies on the benefit. The underlying calc still uses a residual (set by the ATO percentage tables) and a rate, but the tax treatment is the headline difference. An A$45,000 car with a 60% residual, a rate near 6%, and 36 months might be about A$560 a month under a novated structure, with the exact cost depending on your marginal tax rate. Non-novated consumer leases also exist and are closer to the US model.

Country comparison

Currency and tax figures are examples for illustration only and do not reflect live exchange rates or current tax law. For an accurate US-style estimate, use the lease payment calculator with the numbers from a local provider.