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