Enter the total annual percentage rate into the calculator to determine the equivalent money factor.

Money Factor Formula

The following formula is used to calculate a money factor.

MF = APR / 2400
  • Where MF is the money factor
  • APR is the annual percentage rate

Money Factor Definition

Money factor refers to the cost of financing a lease or loan for a vehicle. It is essentially the interest rate applied to the amount being financed. Money factor is important because it directly affects the monthly payment and overall cost of borrowing money for a vehicle.

A lower money factor means lower monthly payments and less interest paid over the life of the lease or loan. It is a crucial factor to consider when negotiating lease or loan terms, as a lower money factor can save a significant amount of money in the long run.

Money Factor Example

How to calculate a money factor/lease factor?

  1. First, determine the APR.

    Calculate the annual percentage rate of the lease or loan.

  2. Next, calculate the money factor.

    Use the equation above to determine the money factor/lease factor.


What is a lease factor?

A lease factor, also known as a money factor, is a me

money factor calculator
money factor formula