Instantly convert money factor to interest rate (APR) with our free online calculator. Simply enter your money factor to see the equivalent APR or convert APR back to MF in seconds.”
0.00125)3 for 3%)- Convert MF → APR: multiply by 2400.
- Convert APR → MF: divide by 2400.
- This is an industry approximation for lease comparisons, not a legally binding APR calculation.
Disclaimer: This calculator provides an estimated conversion of money factor to interest rate for informational purposes only. Actual lease terms and rates may vary; always confirm details with your lender or dealer.
How to convert money factor into interest rate?
The easiest way to convert money factor into interest rate (APR) is to multiply the money factor by 2400. For example, a money factor of 0.00125 equals an interest rate of 3% APR. This quick formula is the automotive industry standard for lease comparisons.
Key Details:
- Formula: APR % = Money Factor × 2400
- Reverse Formula: Money Factor = APR ÷ 2400
- Example: MF
0.00200→ APR4.8%
Money Factor to Interest Rate Conversion Table
| Money Factor (MF) | Interest Rate (APR %) |
|---|---|
| 0.00100 | 2.40% |
| 0.00125 | 3.00% |
| 0.00150 | 3.60% |
| 0.00200 | 4.80% |
| 0.00250 | 6.00% |
| 0.00300 | 7.20% |
FAQs
1. What is the easiest way to convert money factor to interest rate?
Just multiply the money factor by 2400.
2. Why do we multiply by 2400?
The factor 2400 comes from the math of monthly leasing (12 months × 200 basis points). It’s a simplified rule the auto industry uses.
3. How many decimals should I use for money factor?
Most money factors are shown to five decimal places, like 0.00125.
4. What is a good money factor or APR for a car lease?
A good lease rate often ranges from 0.00100 (2.4% APR) to 0.00200 (4.8% APR), depending on credit score and promotions.
5. Can I convert APR back to money factor?
Yes—just divide the APR by 2400. Example: 6% ÷ 2400 = 0.00250 MF.
Conclusion
Converting a money factor to interest rate is simple and powerful. Just remember:
- APR % = MF × 2400
- MF = APR ÷ 2400
Whether you’re shopping for a car lease or negotiating financing, this quick calculation ensures you understand the true cost. Use the Money Factor to Interest Rate Converter above for instant results and compare deals with confidence.
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