##### The two Calculators on this page allow you to convert between Money Factor and Interest Rate.

Money Factor is just another way to represent an Interest Rate and the calculators on this
page allow you to easily convert between the two.
See the Lease Money Factor page for more details about the Money Factor.

**Money Factor Formula:** Money Factor = Interest Rate / 2400

**Interest Rate Formula:** Interest Rate = Money Factor * 2400

**Note:** The number used in the conversion from Interest Rate to Money Factor is always 2400 regardless of the length of the lease.

#### Definitions

**Money Factor** – The Money Factor is just another way to represent the Interest Rate,
but the Money Factor is used in the lease payment calculation so it's important to either know this information
or be able to calculate it if you know the Interest Rate. Sometimes the Dealership will try to tell you Interest
Rates are not part of auto leasing, but that is wrong. For all practical purposes the Money Factor is just
the Interest Rate expressed in a different way.

**Interest Rate** – The cost of borrowing the money for the lease. Leasing is very similar
to purchasing in that you are borrowing money to use the vehicle for a certain period of time.

Also visit our Lease Terminology for a description of all the elements that make up a lease payment.

And be sure to check out the Lease Calculator that can be used from you Smart Phone while you are in the
middle of lease negotiations with the dealership!