What is the lease mileage overage?
The lease mileage overage is the number of miles by which you exceeded your allowance. For example, if your lease allowed you to drive 10 000 miles a year, and you ended up driving 11 000 miles, the overage is
11 000 - 10 000 = 1 000 miles.
How to use the lease mileage tracker?
If you want to calculate the overage with our lease mileage calculator, input the following values:
- Total lease term (T): the time of the lease – for example, 24 months.
- Remaining lease time (t): when your lease will end – for example, in 6 months.
- Current miles driven (s): how many miles you have driven with this car until now – for example, 15 000 miles.
- Annual mileage allowance (A): how many miles on a lease you can drive without incurring additional fees. It could be equal to 8 000 miles.
- Excess distance fee: the charge per mile of excess mileage. Our lease mileage overage calculator will use it to determine your penalty. A typical cost is 20 cents on a mile.
Once you have provided all of these values, our lease mileage calculator will automatically find:
- Predicted excess miles: how many miles over the allowance you will have driven at the end of the lease. This value is calculated according to the formula
excess miles = s + [s * t / (T - t)] - (A * T / 12)
For example, for T = 24 months, t = 6 months, s = 15 000 miles and A = 8 000 miles,
excess miles = 15 000 + [15 000 * 6 / (24 - 6)] - (8 000 * 24 / 12)
excess miles = 4 000
- Predicted lease-end charge: the excess miles multiplied by the fee per mile.
For 4 000 excess miles at the cost of 20 cents per mile,
charge = $0.20 * 4 000 = $800
- Monthly savings required: how much you need to save each month from now until the end of the lease to afford the penalty. You can include this value in your budget calculation.
For the charge of $800, you need to be saving
$800 / 6 = $133.33 every month for the remaining 6 months.