Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A lease sets a mileage allowance, and every mile over it is charged at the end. Three years at 12,000 miles allows 36,000 miles, and driving 45,000 leaves 9,000 excess miles, which at 25 cents each is a $2,250 charge. That is why a mileage estimate belongs in the decision before you sign. Buying extra miles at signing is often cheaper per mile than paying the penalty at the end, if your lessor offers it.
Before you rely on it
What to check
Track your real annual mileage before you choose an allowance, including trips you take once a year. Compare the per-mile price of extra miles at signing with the end-of-lease charge.
The common error
Where people go wrong with lease mileage calculator
Assuming you can average out the miles. The charge applies to the total over the lease, and unused miles usually do not earn a refund.
Sensitivity evidence
How allowed miles per year changes the estimated excess-mileage charge
| Allowed miles per year | Estimated excess-mileage charge | Excess miles | Total allowed miles |
|---|---|---|---|
| 9,600 | $4,050 | 16,200 | 28,800 |
| 10,800 | $3,150 | 12,600 | 32,400 |
| 12,000worked example | $2,250 | 9,000 | 36,000 |
| 13,200 | $1,350 | 5,400 | 39,600 |
| 14,400 | $450 | 1,800 | 43,200 |
Every input, tested
Which input moves the estimated excess-mileage charge most
| Input | Tested from | To | Estimated excess-mileage charge at each end | Swing |
|---|---|---|---|---|
| Lease years | 2.0 years | 4.0 years | $5,250 to $0.00 | $5,250 (233%) |
| Expected total lease miles | 40,500 | 49,500 | $1,125 to $3,375 | $2,250 (100%) |
| Allowed miles per year | 10,800 | 13,200 | $3,150 to $1,350 | $1,800 (80%) |
| Excess-mile charge | $0.23 | $0.28 | $2,070 to $2,520 | $450 (20%) |
Two variables at once
Estimated excess-mileage charge by allowed miles per year and lease years
| Allowed miles per year \ Lease years | 1.0 years | 3.0 years | 5.0 years |
|---|---|---|---|
| 9,600 | $8,850 | $4,050 | $0.00 |
| 10,800 | $8,550 | $3,150 | $0.00 |
| 12,000 | $8,250 | $2,250 | $0.00 |
| 13,200 | $7,950 | $1,350 | $0.00 |
| 14,400 | $7,650 | $450 | $0.00 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Allowed miles per year | 12,000 |
| Lease years | 3.0 years |
| Expected total lease miles | 45,000 |
| Excess-mile charge | $0.25 |
| Estimated excess-mileage charge | $2,250 |
| Excess miles | 9,000 |
| Total allowed miles | 36,000 |
Where the inputs come from
Allowed miles per year is the limit in your lease contract, commonly 10,000, 12,000 or 15,000, lease years is the term, and expected total lease miles is your projected use, from your odometer and typical driving. The excess-mile charge is in the contract, typically 15 to 30 cents a mile. Use your real annual driving, including trips, and be careful with commutes that change during the lease.
When the result stops applying
Some contracts give a small buffer before charges apply, and a few credit unused miles, though most do not. Lessors may allow purchase of extra miles at a discount, which is cheaper than paying at the end. The result excludes wear-and-tear charges and disposition fees. Early termination and buyout options have separate costs.
What to compare it with
Set the payment with the auto lease calculator and the finance charge with the money factor page. The lease versus buy calculator compares lease and purchase costs, and the fuel cost calculator shows the cost of the miles you drive. If your mileage runs high, buying may be cheaper.
People also ask
Frequently asked questions
What happens if I go over my lease mileage?
You pay a per-mile charge on the excess when you return the car, commonly 15 to 30 cents a mile, which can add up to thousands of dollars.
Can I buy extra miles?
Often yes, at signing or during the lease, usually at a lower per-mile price than the end-of-lease charge.
Is a low-mileage lease worth it?
Only if you truly drive little. A lower allowance reduces the payment slightly, but overage charges can erase the savings.