Instantly convert between money factor and APR. Verify if your dealer is offering a fair lease interest rate โ and detect markup above the buy rate.
| Money Factor | APR Equivalent | Rating |
|---|---|---|
| 0.00050 | 1.20% | Excellent |
| 0.00083 | 2.00% | Excellent |
| 0.00125 | 3.00% | Good |
| 0.00167 | 4.00% | Good |
| 0.00208 | 5.00% | Fair |
| 0.00250 | 6.00% | Fair |
| 0.00292 | 7.00% | High |
| 0.00333 | 8.00% | High |
The money factor is the interest component of a lease payment. It's expressed as a small decimal (e.g., 0.00125) rather than a percentage.
Formula:
APR = Money Factor ร 2,400
Money Factor = APR รท 2,400
Important: Dealers can mark up the money factor above the manufacturer's "buy rate" to earn profit. Always ask for the published buy rate and compare. A markup of just 0.0005 (1.2% APR) on a $35,000 car for 36 months costs you about $63 extra.
Use your verified money factor in our complete lease payment calculator to get your exact monthly payment.