What is a money factor on a car lease?

The money factor is the financing charge on a lease, expressed as a small decimal (like 0.00125). To convert it to an approximate APR, multiply by 2,400. So a money factor of 0.00125 equals about 3.0% APR. Lower money factors mean lower financing costs. You can sometimes negotiate the money factor just like you'd negotiate a loan interest rate.

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What Will Your Monthly Lease Payment Be?

Enter your dealer's quoted payment to reveal the hidden money factor and APR — then see exactly how much is depreciation vs. interest, or compare two lease offers side by side.

Current Monthly Payment

—

New Monthly Payment

—

Est. Interest Saved

—

Break-Even

—

Your Lease Quote

Quoted Monthly Payment

The monthly amount the dealer quoted (before tax)

Vehicle MSRP

Selling Price

Residual Value

Lease Term

Down Payment

Residual = $19,250

Your Lease’s Hidden APR

2.46%

Good for a new-car lease for a new-car lease

Money Factor

0.001027

× 2,400 = 2.46%

What’s inside your $450.00/mo payment

$395.83

depreciation (88%)

$54.17

finance charge (12%)

$450.00

/month

You’ll pay $1,950 in finance charges over 36 months — that’s the cost of borrowing.

Payment Breakdown

Shows the two components of your monthly lease payment: depreciation (the value the car loses) and the finance charge (interest cost based on the money factor).

Lease Quote

MSRP

Selling Price

Residual

Term

Monthly Payment

Down Payment

Acquisition Fee

Disposition Fee

Sales Tax

Tax monthly only

Solved Money Factor

0.000168

Equivalent APR

0.40%

Monthly Payment Breakdown

Shows the monthly payment split into depreciation, finance charge, and tax components.

Lease Details

Metric	Value
Money Factor	0.000168
Equivalent APR	0.40%
Monthly Payment	$450.01
Depreciation	$410.97
Finance Charge	$11.57
Tax	$27.46
Total Lease Cost	$18,595
Cost per Mile	$0.52
Adjusted Cap Cost	$41,795
Residual Value	$27,000

About This Analysis

This calculator reverse-engineers the money factor from a quoted lease payment and converts it to an equivalent APR. It does not account for mileage overage charges, excess wear fees, or early termination penalties. Tax calculations are simplified estimates — actual tax treatment varies by state. The money factor is derived from the quoted payment and may differ from the lender’s stated rate. Results are for educational purposes only and should not be considered financial advice.

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