Car Lease Calculator guide
Car Lease Calculator: The Real Cost of Personal Contract Hire
Use our car lease calculator to work out the total and effective monthly cost of a personal contract hire (PCH) lease, including the initial rental and fees.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
Lease deals are advertised by their monthly payment, but the initial rental and fees make a big difference. Our Car Lease Calculator shows the real cost.
How to use the calculator (Car Lease Calculator)
- Enter the monthly rental.
- Enter the initial rental as a number of monthly payments, such as 6.
- Enter the contract length and any admin fee.
- If you expect to go over the mileage limit, enter the excess miles and charge per mile.
How UK leases work
A typical deal is described like 6+35: an initial rental of 6 months' payments, then 35 monthly payments, for a 36-month contract. The calculator adds everything up and divides by the length of the contract.
A worked example
With the calculator's default settings, £289 a month on a 6+35 deal with a £299 fee:
- Initial rental: £1,734
- 35 payments: £10,115
- Total: £12,148, or £337.44 a month on average
Frequently asked questions
Do I own the car at the end?
No. With personal contract hire you hand it back.
What else should I budget for?
Insurance, fuel, and charges for damage beyond fair wear and tear. Servicing and road tax are sometimes included.
Is leasing cheaper than buying?
It can be for new cars you'd replace every few years, but you build no value. Compare with our Car Loan Calculator.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.