Lease Calculator

Money factor is the financing rate used in auto leases, similar to interest rate. Multiply by 2,400 to convert to an equivalent APR. A money factor of 0.00125 = 3% APR. A lower money factor means lower finance charges.

Residual value is the estimated value of the vehicle at the end of the lease term, expressed as a percentage of MSRP. A higher residual value means lower monthly payments because you are paying for less depreciation.

Capitalized cost (cap cost) is the negotiated selling price of the vehicle, adjusted for fees and any down payment. Like a purchase price in financing, this is your starting value for the lease calculation.

Leasing offers lower monthly payments and always driving a new car, but you build no equity. Buying costs more monthly but you own the asset. For high-mileage drivers, buyers who keep cars long-term, or those who modify vehicles, buying is usually better.

Most leases allow 10,000-15,000 miles per year. Exceeding the limit costs $0.10-$0.25 per mile. If you drive over 15,000 miles/year, a lease will likely cost you more in overage fees unless you negotiate higher limits upfront.

Yes. Negotiate the selling price (cap cost) like a purchase. Also negotiate the money factor — dealers sometimes mark it up. Residual value is set by the leasing company and is generally not negotiable.