Money Factor Calculator

Convert between money factor and interest rate for car leases. Calculate lease payments and understand automotive financing terms with our comprehensive lease calculator.

✓ Lease Calculations ✓ Rate Conversion ✓ Payment Analysis

Money Factor Calculator

Conversion Type

Rate Information

Typically between 0.001 and 0.005

Vehicle Information (Optional)

MSRP or negotiated price

Expected value at lease end

Money Factor Formula

Conversion between money factor and interest rate

Conversion Formulas:

Interest Rate = Money Factor × 2400
Money Factor = Interest Rate ÷ 2400
Where 2400 = 24 months × 100 (percentage conversion)

Common Money Factors

Excellent Credit
Money Factor: 0.00125 (3% APR)
Good Credit
Money Factor: 0.00250 (6% APR)
Fair Credit
Money Factor: 0.00375 (9% APR)

Money Factor Guide

Excellent: 0.00100 - 0.00150
Good: 0.00150 - 0.00250
Fair: 0.00250 - 0.00350
Poor: 0.00350+

Lease Terminology

🚗 Capitalized Cost: Vehicle price
💰 Residual Value: End-of-lease value
📊 Money Factor: Lease interest rate
📅 Term: Lease duration
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Understanding Money Factor

Money factor is the lease equivalent of an interest rate used in car leasing. It represents the financing charge portion of your monthly lease payment.

  • Decimal Format: Expressed as a small decimal (e.g., 0.00250)
  • Interest Equivalent: Multiply by 2400 to get APR
  • Credit Dependent: Based on your credit score
  • Negotiable: Can sometimes be improved with good credit

Lease Payment Components

Depreciation

The difference between vehicle price and residual value.

Finance Charge

Interest cost calculated using the money factor.

Taxes & Fees

Sales tax, registration, and other applicable fees.

Total Payment

Sum of all components for your monthly payment.