Money Factor

This is what confuses most people when it comes to leases. The money factor is actually pretty simple. It just refers to the interest rate, but is calculated differently. Like residual values, captive finance companies can adjust the money factor up or down to adjust the monthly lease price.

The money factor is represented as a number such as ".0029". To convert this to a more familiar interest rate, you simply multiply by 2,400. A money factor of .0029 equals roughly 7% interest.

Here's a table showing you what each money factor converts to:

Money Factor	Interest Rate	Money Factor	Interest Rate	Money Factor	Interest Rate
0.0005	1.20%	0.0037	8.88%	0.0069	16.56%
0.0006	1.44%	0.0038	9.12%	0.0070	16.80%
0.0007	1.68%	0.0039	9.36%	0.0071	17.04%
0.0008	1.92%	0.0040	9.60%	0.0072	17.28%
0.0009	2.16%	0.0041	9.84%	0.0073	17.52%
0.0010	2.40%	0.0042	10.08%	0.0074	17.76%
0.0011	2.64%	0.0043	10.32%	0.0075	18.00%
0.0012	2.88%	0.0044	10.56%	0.0076	18.24%
0.0013	3.12%	0.0045	10.80%	0.0077	18.48%
0.0014	3.36%	0.0046	11.04%	0.0078	18.72%
0.0015	3.60%	0.0047	11.28%	0.0079	18.96%
0.0016	3.84%	0.0048	11.52%	0.0080	19.20%
0.0017	4.08%	0.0049	11.76%	0.0081	19.44%
0.0018	4.32%	0.0050	12.00%	0.0082	19.68%
0.0019	4.56%	0.0051	12.24%	0.0083	19.92%
0.0020	4.80%	0.0052	12.48%	0.0084	20.16%
0.0021	5.04%	0.0053	12.72%	0.0085	20.40%
0.0022	5.28%	0.0054	12.96%	0.0086	20.64%
0.0023	5.52%	0.0055	13.20%	0.0087	20.88%
0.0024	5.76%	0.0056	13.44%	0.0088	21.12%
0.0025	6.00%	0.0057	13.68%	0.0089	21.36%
0.0026	6.24%	0.0058	13.92%	0.0090	21.60%
0.0027	6.48%	0.0059	14.16%	0.0091	21.84%
0.0028	6.72%	0.0060	14.40%	0.0092	22.08%
0.0029	6.96%	0.0061	14.64%	0.0093	22.32%
0.0030	7.20%	0.0062	14.88%	0.0094	22.56%
0.0031	7.44%	0.0063	15.12%	0.0095	22.80%
0.0032	7.68%	0.0064	15.36%	0.0096	23.04%
0.0033	7.92%	0.0065	15.60%	0.0097	23.28%
0.0034	8.16%	0.0066	15.84%	0.0098	23.52%
0.0035	8.40%	0.0067	16.08%	0.0099	23.76%
0.0036	8.64%	0.0068	16.32%	0.0100	24.00%