Break Lease Calculator

What "Breaking a Lease" Means

Breaking a car lease means terminating the lease agreement before the end date. Unlike a month-to-month rental, car lease contracts are legally binding agreements with significant early exit costs. The cost to break a lease is typically calculated as a combination of remaining payments, a termination penalty, and any other outstanding fees.

Components of the Break Lease Cost

• Remaining Monthly Payments: You typically owe some or all of your remaining payments. Some lenders charge the full remaining balance; others apply a discount.
• Early Termination Fee: A flat penalty for breaking the contract early. Usually $200–$500, or defined as a multiple of your monthly payment in your contract.
• Disposition Fee: A fee ($300–$400) charged when the leasing company must dispose of or resell the vehicle outside of a normal lease return.
• Mileage Overage: If you've exceeded your mileage allowance, you'll owe overage charges (typically $0.15–$0.25 per mile) at the time of early termination.
• Excess Wear & Tear: Any damage beyond normal wear will be assessed at vehicle inspection.

5 Alternatives to Breaking a Lease (That Cost Less)

• 1. Lease Transfer (Swap): Transfer your lease to another person using LeaseTrader.com or Swapalease.com. They take over your payments, you get out for free (or a small transfer fee). This is the cheapest option.
• 2. Dealer Rollover: A dealer will often "roll" your existing lease into a new vehicle purchase or lease. Your remaining payments get added to the new deal, but it avoids the termination penalty.
• 3. Buyout & Sell: Buy the vehicle at the residual value and sell it privately. If market values are high (as in 2022–2023), you may profit.
• 4. Wait Until Lease End: If you have under 6 months remaining, the total remaining payment cost may be lower than the termination penalty plus fees.
• 5. Negotiate with the Lessor: In hardship situations, some lenders will waive or reduce termination fees. Call and ask — the worst they can say is no.