# How to convert interest rate into money factor

While traditional vehicle financing includes an interest rate representing the risk the Although it may seem confusing, converting your money factor into APR is  31 Jul 2017 To convert the money factor back into an interest rate, multiply it by 2,400. So if the money factor is 0.00125, multiply it by 2,400 to get 3 percent. A low residual/low money factor lease can yield a similar monthly payment during the at a set price or walking away without liability for any unexpected reductions in the vehicle's To convert to an equivalent interest rate, just multiply by 24. A low residual/low money factor lease can yield a similar monthly payment during the at a set price or walking away without liability for any unexpected reductions in the vehicle's To convert to an equivalent interest rate, just multiply by 24. Money factor The money factor is simply another way of calculating interest. lease and converting the annual percentage rate into a monthly percentage rate

## Some lessees may confuse lease rate factors and interest rates. Although the two concepts are related, they are not identical. Interest rates can fluctuate as central banks decide to print more or less money. The lease rate factor in a leasing agreement stays the same throughout the lease term.

7 Feb 2017 To convert an interest rate to an equivalent money factor, divide the the lease, don't expect the money factor to be included in the contract. Firstly, the interest rate can be used. Dividing the interest rate by 2,400 will give you the money factor. Secondly, the lease charge can be used, in which case the   Computed by interest rate divided by number of days in a basic year times the To convert the money factor to a recognizable interest rate, multiply it by 24. In order to convert the internet rate to an equivalent money factor, you simply have to divide the APR interest rate by 2400. Does money factor vary? A low residual/low money factor lease can yield a similar monthly payment during the at a set price or walking away without liability for any unexpected reductions in the vehicle's To convert to an equivalent interest rate, just multiply by 24.

### To convert the money factor to an equivalent annual interest percentage rate (APR), the decimal is always multiplied by 2400. In the example where the money factor is .00225, the math indicates

Computed by interest rate divided by number of days in a basic year times the To convert the money factor to a recognizable interest rate, multiply it by 24. In order to convert the internet rate to an equivalent money factor, you simply have to divide the APR interest rate by 2400. Does money factor vary? A low residual/low money factor lease can yield a similar monthly payment during the at a set price or walking away without liability for any unexpected reductions in the vehicle's To convert to an equivalent interest rate, just multiply by 24. Money factors are not expressed in percentages the same way that interest rates are. Instead, they are written as long decimal numbers. To convert your money  The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR Those terms have formal, legal definitions in some countries or legal The effective APR is the fee+compound interest rate (calculated across a A money factor of .0030 is equivalent to a monthly interest rate of 0.6% and an