Money factor ↔ APR
Quick bidirectional conversion using the rule of thumb used by many lease shoppers and dealer desks.
Educational estimate only. Real quotes depend on taxes, fees, acquisition/disposition charges, rebates, and how your state treats leases. Use your contract and broker numbers as the source of truth. Reading lease payments and the lease glossary explain the fields behind these calculators.
≈ APR (benchmark): 3.0000%
Implied money factor: 0.001250
Lenders often quote a money factor instead of a traditional APR. Multiplying by 2400 yields a rough APR-style percentage many shoppers use for comparison—see our lease glossary for context.
Treat the result as a benchmark, not an official Annual Percentage Rate. Day-count conventions and how tax is capitalized can change the effective cost of money.
Worked example
Comparing two money factors against APR equivalents
- Money factor 0.00150 × 2,400
- 3.60% APR
- Money factor 0.00200 × 2,400
- 4.80% APR
- Money factor 0.00300 × 2,400
- 7.20% APR
- Inverse: 4% APR ÷ 2,400
- 0.00167
Most captive-lender promotional programs land between 0.00050 and 0.00250 for top-tier credit.
Money factor ↔ APR FAQ
Common questions about this calculator. For broader leasing topics, see the full FAQ.
Multiply money factor by 2,400. A money factor of 0.00150 is ~3.6% APR. The inverse: divide APR by 2,400 to get money factor.
Money factor is the daily rent charge expressed as a fraction of cap-cost-plus-residual. Multiplying by 2,400 (≈ 24 × 100) converts the per-period charge into an annual percentage rate.
Lower money factor lowers the rent charge component of every payment. But promotional rates often come with restrictions — minimum term, tier-1 credit, or trade-in requirements. Read the full program disclosure.