Money Factor Calculator
Convert lease money factor to equivalent annual interest rate. Enter capitalized cost, residual, term, and monthly payment.
Use the Money Factor Calculator
Enter capitalized cost, residual value, lease term (months), and monthly payment. Money factor and equivalent annual rate are calculated.
Inputs
Lease terms: capitalized cost, residual, term (months), monthly payment.
Results
Money factor
0.00200
Equivalent annual rate
0.05%
Money factor ≈ (monthly payment − depreciation portion) / (capitalized cost + residual). Annual rate = money factor × 2400.
How this calculator works
Money factor is derived from (monthly payment minus depreciation portion) divided by (capitalized cost plus residual). Equivalent annual rate = money factor × 2400.
How to interpret your results
Lower money factor and annual rate mean lower financing cost. Compare to APRs on auto loans.
FAQs
What is the money factor?▾
A decimal used in leasing to represent the finance portion of the monthly payment. Multiply by 2400 to get an approximate annual rate.
Which inputs do I need?▾
Capitalized cost (negotiated price), residual value, lease term in months, and your monthly lease payment.
When would I use this?▾
To compare lease financing cost to other loans or to check if a quoted money factor is fair.
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