Car Lease Calculator

Money factor is the financing rate, similar to APR but expressed differently. To convert: Money Factor x 2400 = APR. A money factor of 0.002 = 4.8% APR. Lower money factor = cheaper financing. Dealers may not reveal this — you can calculate it from the payment breakdown.

The residual value is the car's predicted worth at lease end, set by the leasing company as a percentage of MSRP. Higher residual = lower monthly payment (less depreciation to cover). SUVs and luxury brands often have strong residuals. This is NOT negotiable — it is set by the manufacturer.

Generally no. A down payment reduces monthly payments but provides zero benefit if the car is totaled or stolen — the insurance pays the leasing company, not you. This money is lost. Instead, keep cash and invest it; let the lease run at its natural monthly payment.

Cap cost is the negotiated selling price of the vehicle — it IS negotiable. Lower cap cost = lower monthly payment. Always negotiate the sale price down before discussing lease terms. Never agree to a lease without knowing the cap cost — dealers may hide inflated prices.

Leasing: lower monthly payments, always in a new car, no resale hassle, but no equity built and mileage limits. Buying: builds equity, no mileage limits, better long-term value if you keep the car 7-10 years. If you drive more than 15k miles/year or want to keep the car long-term, buying usually wins.