Money Factor to APR Converter
The money factor is just an APR in disguise. Multiply it by 2400 to see the real interest rate on your lease — the number dealers rarely say out loud.
Enter the money factor exactly as quoted (a small decimal like 0.00125).
Formula: APR = money factor × 2400, and money factor = APR ÷ 2400.
Why dealers rarely disclose the money factor
On a loan, the interest rate is front and center. On a lease, the same cost is buried in a tiny decimal called the money factor. A rate of 0.00250 sounds harmless — but it's a 6.0% APR. Because the money factor doesn't look like a percentage, most shoppers never compare it to loan rates.
Dealers earn on the spread between the manufacturer's buy rate (the lowest money factor you qualify for) and the sell rate they quote you. Marking the money factor up a few ten-thousandths adds hundreds to the lease — and it's nearly invisible unless you convert it to APR. Always ask for the buy rate and run the math yourself.
These results are only as accurate as the figures you enter. Double-check every number against your actual contract.
Is your money factor marked up?
The Car Lease Checker reconciles your whole worksheet and flags a marked-up rate against the rest of the numbers.
Check my full leaseFrequently asked questions
How do you convert a money factor to APR?
Multiply the money factor by 2400. A money factor of 0.00125 equals 3.0% APR (0.00125 × 2400). To go the other way, divide the APR by 2400.
Why 2400 and not something else?
The money factor is a simplified monthly rate. Multiplying by 2 accounts for how lease interest is charged on the sum of the cap cost and residual, and multiplying by 1200 converts a monthly decimal rate into an annual percentage — combined, that's 2400.
Why do dealers quote a money factor instead of an APR?
A money factor like 0.00250 looks small and abstract, while its APR equivalent (6.0%) is instantly comparable to a loan. Quoting the money factor makes a marked-up rate harder to spot and easier to hide inside the monthly payment.
What is a good money factor?
It depends on credit and the manufacturer's current programs, but converting to APR lets you benchmark it against loan rates. If the APR is far above what you'd pay to finance the same car, the rate may be marked up above the buy rate.