Auto Lease Calculator · Practical guide
Money Factor to APR Conversion
Multiply the money factor by 2,400 to get the equivalent APR — 0.00125 is about 3%.
At a glance
The One-Step Conversion
To convert a lease money factor to an APR, multiply by 2,400. A money factor of 0.00125 × 2,400 = 3.0% APR. To go the other way, divide the APR by 2,400: a 6% APR corresponds to a money factor of 0.0025.
Interactive tool
Auto Lease Calculator
Enter your own values, then compare the result with the examples below.
Results
Conversion Table
| Money Factor | Equivalent APR |
|---|---|
| 0.00083 | ≈ 2.0% |
| 0.00125 | ≈ 3.0% |
| 0.00167 | ≈ 4.0% |
| 0.00208 | ≈ 5.0% |
| 0.00250 | ≈ 6.0% |
Why 2,400
The money factor is applied to the sum of the cap cost and residual, which is roughly twice the average balance you owe during the lease, and it is a monthly figure. Multiplying by 12 (months) and by 2 (the balance adjustment) gives the 2,400 conversion factor.
What the Difference Costs
On a lease with a $34,000 net cap cost, 58% residual on a $40,000 MSRP, and a 36-month term: a money factor of 0.00125 produces a $71.50 monthly finance charge and a $397.51 payment with 7% tax. At 0.0025 (6% APR) the finance charge doubles to $143.00, the payment rises to $474.01, and the total lease cost climbs from $17,310 to $20,064 — about $2,754 more. Always ask for the buy rate and convert it before signing.
Frequently Asked Questions
What is a good money factor on a lease?
Convert it to APR and compare with current auto loan rates. As a rough guide, anything under 0.00167 (about 4% APR) is competitive for a borrower with strong credit.
Can dealers mark up the money factor?
Yes. Dealers may quote a money factor above the leasing company's buy rate and keep the difference. Knowing the conversion lets you spot the markup.
Is the money factor negotiable?
Often, yes. You can negotiate it down toward the buy rate set by the lender, especially if you have strong credit or competing offers.
Does my credit score affect the money factor?
Yes. Leasing companies tier money factors by credit score, so top-tier credit gets the lowest factor available for that vehicle.