Money Factor Calculator

Convert Lease Money Factor to APR Interest Rate

The Money Factor Calculator translates auto lease money factors into annual percentage rate (APR) interest rates and vice versa. Car dealerships frequently express auto lease financing charges as a small decimal known as a money factor (for example, 0.0025). Converting this number to an equivalent APR allows car shoppers to compare lease interest rates directly with traditional auto loan rates.

Money Factor Conversion Formulas

The mathematical relationship between a lease money factor and an annual percentage rate is straightforward:

• Money Factor to APR: $\text{APR (\%)} = \text{Money Factor} \times 2400$
• APR to Money Factor: $\text{Money Factor} = \frac{\text{APR (\%)}}{2400}$
• Monthly Rent (Finance) Charge: $\text{Monthly Rent} = (\text{Capitalized Cost} + \text{Residual Value}) \times \text{Money Factor}$

How to Use the Calculator

1. Select whether you want to convert Money Factor to APR or APR to Money Factor.
2. Enter the lease money factor (e.g. 0.0025) or interest rate (e.g. 6.0%).
3. Optionally enter vehicle capitalized cost, residual value, and lease term in months to estimate monthly finance fees and total lease costs.
4. Review the equivalent APR interest rate, monthly rent charge, and estimated monthly lease payment in real time.