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

A money factor is a method for determining the financing charges on a lease with monthly payments. More specifically it’s 1/2400th of the APR of the lease.

## Money Factor Example

How to calculate a money factor/lease factor?

**First, determine the APR.**Calculate the annual percentage rate of the lease or loan.

**Next, calculate the money factor.**Use the equation above to determine the money factor/lease factor.

## FAQ

**What is a lease factor?**

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