Lease Equity Calculator
See if your leased car is worth more than you owe — and what negative equity would add to your next lease.
- Added to your new payment (incl. tax)—
- Extra depreciation per month—
- Extra rent charge per month—
- Total added over the new lease—
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Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.
How to calculate lease equity
Lease equity is simply the car's value minus what it costs to pay off the lease:
If the result is positive, you can use it as a down payment on your next car or take it as cash. If it is negative, you owe more than the car is worth.
What happens when you roll negative equity into a new lease
Dealers often add negative equity to the cap cost of your next lease. That money is then paid through depreciation and is charged rent on top:
For example, $2,500 of negative equity on a 36-month lease with a 0.0025 money factor adds about $69.44 + $6.25 = $75.69 a month before tax.
Ways to deal with negative equity
- Wait. Equity usually improves as you make payments.
- Pay it in cash instead of rolling it into a new lease, so it is not charged rent.
- Get several offers. Trade-in offers vary a lot between dealers.
- Keep the car to the end and return it — the lender takes the loss on the residual.
Comparing a buyout? Use the lease buyout calculator.
Frequently asked questions
How do I know if I have equity in my lease?
Ask your lender for the payoff amount and get a trade-in offer. If the offer is higher than the payoff, you have positive equity.
Can I use lease equity on a new car?
Yes. A dealer can pay off your lease and apply the positive equity as a down payment on the next car.
Is it bad to roll negative equity into a new lease?
It raises your new payment and you pay rent charge on that debt. Paying it in cash is usually cheaper if you can.
Why is my lease payoff higher than the residual?
Before the end of the lease, the payoff includes the depreciation you have not paid yet, on top of the residual.
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- Lease vs Buy Car CalculatorCompare the true cost of leasing versus buying the same car, counting the value of the car you would own.Open calculator →
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- Early Lease Termination CalculatorCompare the three ways out of a car lease — return it early, sell it, or keep it — and see roughly what each one costs.Open calculator →