Money Factor (Lease)

Finance

Convert money factor to interest rate (APR). Money factor is lease financing cost. Formula: APR = Money Factor × 2400. Typical range: 0.0001-0.003

Formula

APR = Money Factor × 2400

MF = 0.0012

Inputs
  • Money Factor (decimal): 0.0012

APR = 0.0012 × 2400 = 2.88%

Frequently asked questions

What's a good money factor?
0.0010-0.0025 is typical; lower is better
How to negotiate?
Money factor often negotiable on car leases