Car leasing affordability calculator UK

Your leasing budget

Enter your income and outgoings below. The calculator suggests a maximum monthly payment you might comfortably afford. Use this as your budget when comparing lease deals (and remember to leave room for insurance, fuel and tax).

What is car leasing?

With a personal contract hire (PCH) or business contract hire lease, you pay a fixed monthly amount to use a car for an agreed term—typically two to four years—and an agreed annual mileage. At the end you return the car; you do not own it unless you arrange a separate purchase option.

Lease payments are based on the car's depreciation over the term plus interest and fees. Because you are not paying to own the vehicle, monthly payments can be lower than equivalent PCP or hire purchase payments for the same car. In return, you have no equity at the end and must stay within mileage limits to avoid excess charges.

Leasing vs PCP and hire purchase

With PCP or HP you are paying toward ownership (or the option to own). With leasing you are only paying for use. That makes leasing attractive if you want a new car every few years and are happy never to own it. Our affordability calculator works for all of these: the "monthly payment" it suggests is the amount you can reasonably allocate to any car payment—lease, PCP or HP—from your budget.

When comparing deals, remember that a lease quote usually includes the rental only. You still need to pay for insurance, fuel, road tax and maintenance (unless included in the lease). Our calculator gives you a total monthly budget; leave a portion for those other costs when deciding how much to spend on the lease itself.

How much can I afford to lease?

A common rule of thumb is to keep total car costs—lease payment, insurance, fuel, tax—within 15% to 20% of your monthly take-home pay. If you have high housing costs or other loans, staying toward 10–15% is safer.

Our tool lets you choose conservative (10%), standard (15%) or aggressive (20%) of your net income for the monthly payment. That payment is the amount you could put toward a lease (or any other car finance). If you choose 15% and get £300, for example, you might aim for a lease around £250–£280 per month and keep the rest for insurance and running costs.

What affects lease payments?

Lease prices depend on the car's list price, expected depreciation, term length, annual mileage and the finance company's rates. A longer term or higher mileage usually means a higher monthly payment. A larger initial rental (upfront payment) can reduce the monthly amount but increases the cost if you cannot afford it.

Your affordability does not change the lease quote—but knowing your budget helps you filter deals. If you can afford £350 per month, you can ignore quotes above that and focus on cars that fit your budget.

Costs to consider beyond the lease

Budget for insurance (often the biggest cost after the lease), fuel or charging, road tax and servicing. Some leases include maintenance; others do not. Excess mileage charges can add up if you go over your agreed limit, so choose a realistic annual mileage when you get quotes.

Tips for leasing within your budget

Use our calculator first to get a monthly budget. Then compare lease deals from multiple sources—manufacturers, brokers and dealers—and only look at cars where the monthly rental is below your budget. Consider a slightly older or lower-spec model if it keeps you comfortably within your limit. Always read the contract for mileage, excess charges and what happens at the end of the term.

Use our leasing affordability calculator

Enter your details above to see an estimated monthly payment you can afford. Use that figure when comparing UK lease offers. This tool is for guidance only and does not constitute financial advice or a lease offer.