Lease Money Factor to APR Calculator

About this calculator

Car dealers quote lease pricing using a "money factor" — a small decimal like 0.00125 — instead of a familiar interest rate, which makes leases harder to compare at a glance. The widely used approximation converts between the two with the "times 2400 rule": APR equals the money factor multiplied by 2400, and the reverse conversion divides the APR by 2400 to get the equivalent money factor.

Car shoppers use this conversion specifically because dealers rarely volunteer the equivalent APR on a lease quote, and without converting the money factor into a familiar interest rate it is difficult to judge whether a lease's financing cost is competitive or to compare it against a loan's stated APR.

This calculator takes either a money factor or an APR and converts it to the other using the ×2400 rule, so you can see exactly what interest rate a dealer's money factor actually represents.