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Vehicle Lease Calculator

Calculate vehicle lease payments including residual value, finance charges, and GST. Compare leasing vs buying for business and personal vehicles in NZ.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Data stays on your deviceVerified formula

About this calculator

This calculator uses Consumer Protection vehicle leasing rules. Reference: Standard lease finance formula. Last consulted 15 February 2026.

Current NZ vehicle lease context

Indicative 2026 market
  • •Typical lease term: 2-5 years (3 yrs most common)
  • •Typical residual value: 30-50% at end of term
  • •Finance rate (typical): 8-12% pa
  • •GST on lease payments: 15% (claimable if GST-registered)
  • •Mileage allowance (typical): 15,000-25,000 km/yr
  • •Excess km charge: ~$0.20-0.40 per excess km

Disclaimer

This calculator provides estimates for general information purposes only. Results are based on standard formulas and may not reflect your individual circumstances. Always consult a qualified professional for advice specific to your situation.

How vehicle lease payments are calculated

Lease payment covers depreciation (vehicle value − residual) + finance charges + GST. You pay only for the value you use, not the whole car.

  1. 1

    Depreciation per month

    Depreciation = (vehicle_price − residual_value) ÷ months

    Residual = expected value at lease end (typically 30-50%).

  2. 2

    Finance charge per month

    Finance = (price + residual) ÷ 2 × monthly_rate

    Interest on average outstanding balance.

  3. 3

    Pre-GST monthly cost

    Pre_GST = depreciation + finance + admin_fees

    Add maintenance if included in 'full-service' lease.

  4. 4

    Add GST

    Monthly_lease = pre_GST × 1.15

    Businesses can claim GST back if GST-registered.

Worked example

Inputs: $40k vehicle, 30% residual, 8% finance, 3 years, GST inc

Result: Depreciation $778 + finance $173 = $951 + 15% GST = $1,094/mo lease.

Frequently Asked Questions

Is it cheaper to lease or buy a car in New Zealand?
It depends on your situation. Leasing typically has lower monthly payments than a car loan because you are only paying for the depreciation (not the full vehicle price), but you do not own the vehicle at the end. For GST-registered businesses, leasing is often more tax-efficient because GST on lease payments can be claimed as an input tax credit, and lease payments are a fully deductible business expense. For personal use, buying is usually cheaper long-term if you plan to keep the vehicle for more than 5 years. A common approach for NZ businesses is to lease vehicles on a 3-year operating lease, then return or upgrade. Source: Consumer NZ (consumer.org.nz).
What is the residual value on a vehicle lease?
The residual value (also called the balloon payment or guaranteed future value) is the predicted value of the vehicle at the end of the lease term. It is set by the leasing company at the start of the lease, typically as a percentage of the purchase price. For a 3-year lease on a new car in NZ, residual values are usually 25%–35% of the original price. At the end of the lease you have three options: return the vehicle (if it meets condition requirements), pay the residual to buy it outright, or refinance the residual into a new loan. A higher residual means lower monthly payments but a larger buyout cost at the end. Source: Motor Trade Association NZ (mta.org.nz).
Can I claim GST on a vehicle lease in New Zealand?
Yes, if you are GST-registered and the vehicle is used for business purposes, you can claim the GST component of each lease payment as an input tax credit on your GST return. For example, if your monthly lease payment is $1,150 including GST, the GST component is $150 (calculated as $1,150 x 3/23), which you can claim back. If the vehicle is used partly for personal use, you must apportion the GST claim based on the business-use percentage. Note that GST on the residual/buyout payment at the end of the lease is also claimable if you purchase the vehicle for business use. Private (non-business) lessees cannot claim GST. Source: IRD — GST on Motor Vehicles (ird.govt.nz).
What happens at the end of a vehicle lease in NZ?
At the end of your lease term in New Zealand, you typically have three options: (1) Return the vehicle to the leasing company — you walk away with no further obligation, provided the vehicle meets the agreed condition and mileage limits (excess wear or km charges may apply). (2) Purchase the vehicle by paying the residual value (plus GST if applicable). (3) Trade in or upgrade to a new lease on a newer vehicle, rolling over any equity or residual. Most NZ business leases are structured as operating leases (off-balance sheet), while finance leases are treated as an asset purchase. Your lease agreement will specify which type applies and what options you have at the end. Source: Motor Trade Association NZ (mta.org.nz).

A vehicle lease calculator estimates monthly payments for leasing a car, truck, or van in New Zealand. Unlike a car loan where you own the vehicle, a lease lets you use it for a set term and return it (or buy it at the residual value). Business leases are popular in NZ because GST on payments is claimable as an input tax credit.

How this calculator works

The calculator uses the flat-rate lease formula. Monthly payment = (Vehicle Price - Residual Value + Finance Charge) / Lease Term in months. The finance charge is calculated as (Vehicle Price + Residual Value) x Interest Rate x Term / 2. For business leases, GST (15%) is added to each payment and can be claimed back.

Typical NZ Vehicle Lease Rates (2026)

New car lease (fleet)5.5% – 8.5%
New car lease (private)7.5% – 11%
Used car lease9% – 14%
Truck / commercial lease6% – 10%
Typical residual (3-year)25% – 35%
Typical lease term2 – 5 years

Rates vary by provider, vehicle type, and credit profile. Rates shown are indicative.

Worked Examples

Lease a $50,000 ute for 3 years at 8%, 30% residual (business, GST-registered)

Monthly payment: $1,148.96 incl GST ($999.10 ex GST)

  1. Residual value: $50,000 x 30% = $15,000
  2. Depreciation charge: $50,000 - $15,000 = $35,000
  3. Finance charge: ($50,000 + $15,000) x 8% x 3 / 2 = $7,800
  4. Total lease cost (ex GST): $35,000 + $7,800 = $42,800
  5. Monthly ex GST: $42,800 / 36 = $1,188.89
  6. Monthly incl GST: $1,188.89 x 1.15 = $1,367.22
  7. GST claimable over term: $1,188.89 x 0.15 x 36 = $6,420
  8. Buyout at end: $15,000 + GST = $17,250

Lease a $35,000 sedan for 4 years at 9.5%, 25% residual (personal)

Monthly payment: $773.18 (no GST)

  1. Residual value: $35,000 x 25% = $8,750
  2. Depreciation charge: $35,000 - $8,750 = $26,250
  3. Finance charge: ($35,000 + $8,750) x 9.5% x 4 / 2 = $8,312.50
  4. Total lease cost: $26,250 + $8,312.50 = $34,562.50
  5. Monthly payment: $34,562.50 / 48 = $720.05
  6. Buyout at end: $8,750

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last reviewed:

Official Sources

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