Quick answer: APR = money factor × 2,400. So the common 0.00125 quote is a 3.00% APR, and a marked-up 0.00160 is 3.84% — a difference of $643 in rent charges over a 36-month lease on a mid-range car. Convert your quote below before you sign.
Convert money factor to APR (and back), then deal-check your lease quote
| Money Factor | Equivalent APR | Where You'll See It |
|---|---|---|
| 0.00050 | 1.20% | Subvented promo lease rates |
| 0.00080 | 1.92% | Top-tier credit, promo |
| 0.00100 | 2.40% | Top-tier credit |
| 0.00125 | 3.00% | Top-tier credit, common deal |
| 0.00150 | 3.60% | Good credit |
| 0.00175 | 4.20% | Good credit |
| 0.00200 | 4.80% | Average credit |
| 0.00225 | 5.40% | Average credit |
| 0.00250 | 6.00% | Fair credit |
| 0.00275 | 6.60% | Fair credit |
| 0.00300 | 7.20% | Below-average credit |
| 0.00350 | 8.40% | Deep subprime tier |
| Credit Score | Typical Money Factor | Equivalent APR |
|---|---|---|
| 740 and up | 0.00080 – 0.00150 | 1.92% – 3.60% |
| 700 – 739 | 0.00110 – 0.00180 | 2.64% – 4.32% |
| 660 – 699 | 0.00160 – 0.00220 | 3.84% – 5.28% |
| 620 – 659 | 0.00220 – 0.00280 | 5.28% – 6.72% |
| Below 620 | 0.00280 – 0.00350 | 6.72% – 8.40% |
These are typical captive-lender buy-rate ranges, not quotes. Dealers can mark the rate up, and subvented manufacturer deals can drop far below the top tier regardless of score. Always ask for the money factor in writing.
A lease doesn't quote you an interest rate. It quotes a money factor: a small decimal like 0.00125 that sets the rent charge, the lender's cut for financing the car's depreciation while you drive it. Because almost nobody thinks in five-decimal terms, the quickest way to judge a lease offer is to convert it to the APR you'd see on a loan.
APR = money factor × 2400, and money factor = APR ÷ 2400. The 2,400 comes from the units: the money factor is a monthly rate written as a decimal, so APR% ÷ 100 ÷ 12 = money factor, which is APR ÷ 2400. The rent charge each month is (adjusted cap cost + residual value) × money factor.
Pick a direction, type the number, and the conversion is instant. If your dealer quoted the money factor as "2.9" instead of 0.00290, that's the same number multiplied by a thousand, a common shorthand. Then drop your cap cost and residual into the deal-check section to see the actual monthly rent charge those digits cost you.
You're quoted a money factor of 0.00125 on a lease with a $32,000 adjusted cap cost and a $19,000 residual. Multiplying by 2,400, that's a 3.00% APR, a genuinely good rate for average credit. The monthly rent charge is ($32,000 + $19,000) × 0.00125, or $63.75 a month, and $2,295 over a 36-month lease.
Now suppose the dealer quoted 0.00160 instead. That converts to 3.84% APR, and the rent charge jumps to $81.60 a month. The $17.85 monthly difference is $643 over the lease. That's the size of a typical rate markup, and it's why converting before you sign is worth thirty seconds.
Multiply the money factor by 2,400. A money factor of 0.00125 works out to 0.00125 x 2400 = 3.0% APR. Going the other way, divide the APR by 2,400: a 6.96% APR is a 0.00290 money factor.
The money factor is the interest rate on a lease, written as a small decimal instead of a percentage. It sets the rent charge, the fee you pay for using the lender's money. Rent charge each month equals (adjusted cap cost + residual value) x money factor, so on a $51,000 combined balance a 0.00125 money factor costs $63.75 a month.
The money factor is a monthly rate expressed as a decimal, while APR is an annual rate expressed as a percentage. APR / 100 / 12 = money factor, which simplifies to APR / 2400. Flip it around and money factor x 2400 = APR.
For top-tier credit (roughly 740+), captive lenders typically offer money factors around 0.00080 to 0.00150, the equivalent of 1.92% to 3.60% APR. Average credit often lands between 0.00220 and 0.00280 (5.28% to 6.72%). Automakers also run subvented lease deals near 0.00050 (1.2%) on slow-moving models.
Yes. Dealers can mark up the lender's buy rate, often by 0.00040 or more, and that markup is pure profit for them. Ask for the money factor in writing, convert it to APR here, and compare against the lender's published base rate for your credit tier. A 0.00035 markup on a $51,000 balance costs about $18 a month, or $643 over a 36-month lease.