Money Factor Calculator — Auto Lease APR Converter
The money factor (MF) is how lenders express the interest rate in a car lease — multiply by 2400 to convert to APR. Enter the APR, vehicle cap cost, residual value, and term to get the monthly payment split into its depreciation and finance-charge components.
%
$
$
months
Depreciation + finance charge per month (before sales tax)
- 1
Money factor
3.6% ÷ 2,400 = 0.0015 - 2
Monthly depreciation
(30,000 − 18,000) ÷ 36 = 333.33 - 3
Monthly finance charge
(30,000 + 18,000) × 0.0015 = 72 - 4
Monthly payment
333.33 + 72 = 405.33
How does this calculator work?
Money factor converts to APR by multiplying by 2400 (MF = APR / 2400). Monthly lease payment = (Cap Cost − Residual) ÷ Term + (Cap Cost + Residual) × MF. The first part is the depreciation charge; the second is the finance charge. Enter APR, vehicle price, residual, and term to get the monthly breakdown.
Formula
How this is calculated
A car lease payment has two parts. The depreciation component covers the drop in vehicle value over the lease: (Cap Cost − Residual Value) ÷ Term. The finance charge covers the cost of borrowing: (Cap Cost + Residual Value) × Money Factor — effectively charging interest on the average of the vehicle value at the start and end of the lease.
The money factor is the lender's interest-rate metric for leases. It converts to APR by multiplying by 2400 (not 1200, because the averaging of cap and residual introduces a factor of 2). A money factor of 0.0015 equals an APR of 3.6%. Conversely, APR ÷ 2400 = MF. If a dealer gives you a money factor, verify it converts to a reasonable APR before signing.
The calculator shows pre-tax monthly payment; most US states add sales tax on top of each monthly payment (not on the full cap cost), which varies by jurisdiction and is not included here. "Capitalized cost" is the negotiated price after any down payment, trade-in credit, or rebates are applied.
Frequently asked questions
Money factor varies with market rates. Divide the money factor by 0.0001 to get a rough basis-point figure, or multiply by 2400 to get APR. In 2024–2025, money factors equivalent to 3–6% APR were common; promotional lease deals from manufacturers sometimes offer factors under 0.001 (< 2.4% APR).
The capitalized cost (cap cost) is the effective purchase price of the vehicle for the lease — the sticker price minus any negotiated discount, down payment, trade-in equity, or manufacturer rebates applied to it. Lowering the cap cost directly reduces both the depreciation portion and the finance charge.
It is the base payment before sales tax and fees. Most states tax each monthly lease payment; registration, acquisition, and disposition fees are also added by dealers. The calculator shows the core depreciation + finance split so you can evaluate the underlying rate independently of fees.
Also known as
TG we-Calculate Editorial Team. (2026). Money Factor Calculator — Auto Lease APR Converter [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/money-factor-calculator
TG we-Calculate Editorial Team. "Money Factor Calculator — Auto Lease APR Converter." TG we-Calculate. 2026. https://we-calculate.com/calculator/money-factor-calculator.
TG we-Calculate Editorial Team, "Money Factor Calculator — Auto Lease APR Converter," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/money-factor-calculator
@misc{wecalculate_money_factor_calculator, title = {Money Factor Calculator — Auto Lease APR Converter}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/money-factor-calculator}}, year = {2026}, note = {TG we-Calculate} }
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