Money factor to APR converter
What interest rate is a money factor? Multiply it by 2,400. A money factor of 0.0023 is 5.52 percent a year. Enter either number to convert it, and see what it costs you each month on a lease.
Convert
A small decimal on a lease quote, such as 0.0023.
Interest rate (APR)
5.52%
The money factor times 2,400.
What it costs on a lease
The borrowing part of a lease payment is the amount leased plus the residual value, times the money factor.
- Cost of borrowing each month
- $147.20
- Over 36 months
- $5,299.20
A lease also has the car losing value each month, and sales tax, so the borrowing cost is only part of the payment.
Keep going with Uobo
Uobo is your personal car agent. Text it what you need and it does the research and the checks, asks dealerships about availability, condition and price for you, and helps you decide. This is the text you would send:
You can edit this text before you send it.
On a computer? Text (289) 819-4586 from your phone and paste what you copied. Standard message rates apply. Reply STOP any time to stop.
How it works
A lease quote often shows a money factor, a small decimal, instead of an interest rate. To turn it into a yearly rate, multiply by 2,400. To go the other way, divide the rate by 2,400.
The borrowing part of each payment is the amount leased plus the residual value, times the money factor. That is why a small change in the money factor adds up over the lease.
Your privacy comes first. What you enter stays on your device unless you choose to text it to Uobo.
Example: a money factor of 0.0023
0.0023 times 2,400 is a 5.52% interest rate. On a lease of $40,000 with a $24,000 residual, that is about $147.20 a month in borrowing cost, or $5,299 over 36 months.
What this does not cover
- The borrowing cost is only part of a lease payment. The car also loses value each month, and sales tax is added. The lease payment calculator puts all the parts together.
- A lender can show a money factor that includes fees. Ask whether the figure is the full rate.
- This is a converter, not a quote. The rate you are offered depends on your credit and the lender.
Common questions
How do you convert a money factor to APR?
Multiply the money factor by 2,400. For example, 0.0025 times 2,400 is 6 percent.
What is a good money factor for a car lease?
Lower is better. A money factor of 0.0020 is 4.8 percent and 0.0030 is 7.2 percent. Compare it with the interest rate you could get on a loan, and with quotes from other dealers for the same car.
Why do leases use a money factor?
It is the way lease interest has long been quoted, and a tiny decimal can make a rate look unfamiliar. Converting it to a percent lets you compare it with a loan rate.
How do I convert an APR to a money factor?
Divide the yearly rate by 2,400. A 4.8 percent rate is 0.0020.