Financial glossary
Lease Money Factor
In plain English
The financing rate used in a vehicle lease; multiplying it by 2,400 gives a rough APR equivalent for comparison.
Lease money factor
The money factor is the financing rate used in many vehicle leases. It appears as a small decimal rather than a familiar APR. Multiplying a money factor by 2,400 gives a rough APR equivalent: 0.0025 × 2,400 = 6%.
The conversion helps comparison, but a lease payment also depends on capitalized cost, residual value, term, taxes, acquisition fees, incentives, and amounts due at signing. A low monthly payment can hide a large upfront payment or mileage restrictions.
The lease vs. buy calculator compares total cash cost and buyer equity. Use the actual monthly lease quote after taxes and required fees.
Related calculators
- Car Lease vs. Buy CalculatorCompare leasing and buying a car over the same period, including down payments, monthly payments, loan balance, depreciation, maintenance, and equity.
- Car Loan CalculatorEstimate your monthly car payment including trade-in value, down payment, and sales tax. See total interest and the full cost of your auto loan.