Money Factor to APR Converter
Convert a lease money factor to APR (or APR to money factor) with the x2400 rule.
Your numbers never leave your browserEstimates only. Figures use sample assumptions and are not a quote. Confirm the final price, money factor, residual, fees and taxes with your dealer or lender. Not financial advice.
How the money factor conversion works
The money factor is a small decimal that lease companies use instead of an APR. Multiplying it by 2,400 gives an approximate annual percentage rate, and dividing an APR by 2,400 gives the money factor. The conversion is exact enough for shopping comparisons even though the underlying lease rate may include other factors.
Why the number looks so small
A money factor of 0.00250 sounds tiny next to a 6% APR, but the x2400 rule shows they describe the same cost. Once you know the conversion, lease offers become easy to compare with loan offers.
Using it when shopping
When a dealer quotes a money factor, convert it to APR on the spot with this tool so the lease rate is directly comparable to a loan rate you might be offered. A lower money factor is better for you, just as a lower APR is, and even a small difference of 0.00040 can shift the monthly payment by several dollars across a three-year lease. If a quote only shows an APR, convert it back to a money factor to compare like for like with other lease offers before you sign.
FAQ
What is the x2400 rule?
Lease money factors are a small decimal such as 0.00250. Multiply by 2,400 to get the approximate APR (0.00250 x 2400 = 6.00%). Divide an APR by 2,400 to go the other way.
Why do leases use a money factor instead of APR?
It is a legacy convention from the auto leasing industry. The number looks tiny, so it is easy to compare offers quickly once you know the x2400 conversion.
Is the converted APR exact?
It is a close approximation used across the industry. Your actual lease rate is set by the leasing company and may include other factors.
Are these numbers a real quote?
No. This is a math converter only. Your actual money factor comes from your dealer or leasing company. This site is not financial advice.
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