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Money Factor to APR Calculator

Type a money factor or an APR — the other updates instantly. Add your contract numbers to find your real rate and any markup.

Example: 0.00125
Example: 3 (%)

Optional — find your money factor from the contract and check for a markup:

"Rent charge" line on the contract.
In dollars, from the contract.
The "buy rate". Ask the dealer or check the lender's published rate.
Equivalent APR—
  • Money factor—
  • Money factor from your contract—
  • APR from your contract—
  • Markup in APR points—
  • Extra cost per month from markup—
  • Extra cost over the lease—

100% private. Everything is calculated in your browser. Nothing you type is sent or stored on a server.

Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.

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Money factor to APR: the formula

The money factor is the interest rate of a lease written as a small decimal. To compare it with a car loan, convert the money factor to an interest rate (APR):

APR (%) = money factor × 2400 Money factor = APR (%) ÷ 2400

So a money factor of 0.00125 is a 3% APR, and 0.0025 is 6%. The number 2400 comes from 12 months × 100 (to make a percentage) × 2, because the lease rent charge is calculated on the cap cost plus the residual — roughly double the average balance.

How to find the money factor in your lease contract

Many lease contracts show the total rent charge but not the money factor. You can work it out from three numbers on the contract:

Money factor = (total rent charge ÷ months) ÷ (adjusted cap cost + residual value)

Enter them in the optional fields above and the calculator does it for you.

Is the dealer marking up your money factor?

Lenders publish a base money factor, often called the "buy rate", for each credit tier. Dealers are frequently allowed to add a markup and keep the difference. A markup of 0.0004 looks tiny, but it is almost a full point of APR (0.0004 × 2400 = 0.96%).

Money factorAPR
0.000501.20%
0.001002.40%
0.001253.00%
0.002004.80%
0.002506.00%
0.003007.20%
0.003508.40%

If you know the base rate, enter it in the last field. You will see how much the markup adds per month and over the full lease, which gives you a concrete number to negotiate. Then plug the corrected rate into the car lease calculator.

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Frequently asked questions

How do you convert a money factor to an interest rate?

Multiply the money factor by 2400. For example, 0.00125 × 2400 = 3, so the money factor equals a 3% APR.

How do you convert APR to a money factor?

Divide the APR by 2400. A 4.8% APR is 4.8 ÷ 2400 = 0.002.

Why do you multiply the money factor by 2400?

12 months × 100 to make it a percentage, times 2 because the rent charge is calculated on the cap cost plus the residual, which is about twice the average amount you owe.

What is a good money factor?

One that matches the lender's base rate for your credit tier. In APR terms, it should be similar to what you would pay on a new-car loan.

Can I negotiate the money factor?

Often yes. If the dealer added a markup over the lender's buy rate, you can ask them to remove it. Knowing the base rate is the key.

How do I calculate the money factor from the rent charge?

Divide the total rent charge by the number of months, then divide by the adjusted cap cost plus the residual value.

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