Money Factor Calculator

The Money Factor Calculator helps users determine the financial aspects of a vehicle lease by calculating the money factor, monthly rent charge, monthly depreciation, total monthly payment, and total lease cost based on the lease price, residual value, lease term, and annual percentage rate.

Use Our Money Factor Calculator

How to Use the Money Factor Calculator

The Money Factor Calculator is a tool designed to help you calculate the financial aspects of a vehicle lease. Follow the step-by-step guide below to effectively use this calculator.

Step 1: Gather Required Information

Before using the Money Factor Calculator, ensure you have the following information ready:

  • Lease Price ($): The total price of the vehicle lease. It must be a minimum of $1,000.
  • Residual Value ($): The estimated value of the vehicle at the end of the lease term. It can be any value from $0 upwards.
  • Lease Term (Months): The duration of the lease agreement in months. It should be either 12, 24, 36, 48, or 60 months.
  • Annual Percentage Rate (APR %): The yearly interest rate charged on the lease. The value should be between 0% and 100%, with increments as small as 0.01%.

Step 2: Input Data into the Calculator

Using the information you gathered, input the data into the calculator as follows:

  • Enter the Lease Price in the field designated for lease price.
  • Fill in the Residual Value in the corresponding field.
  • Select the Lease Term from the drop-down or enter a valid number of months.
  • Insert the APR in the APR field.

Step 3: Calculate the Results

Once all the fields are filled with valid inputs, the calculator will automatically perform calculations to provide you with the following results:

  • Money Factor: Calculated as APR divided by (24 * 100) to determine the lease rate factor.
  • Monthly Rent Charge: Determined by multiplying the sum of Lease Price and Residual Value by the Money Factor.
  • Monthly Depreciation: Calculated by dividing the difference between Lease Price and Residual Value by the Lease Term.
  • Total Monthly Payment: The sum of Monthly Rent Charge and Monthly Depreciation.
  • Total Lease Cost: The product of the Total Monthly Payment and Lease Term.

Step 4: Interpret and Use the Results

Review the calculated results. The Money Factor provides a rate-related measure of your lease. The Monthly Rent Charge and Monthly Depreciation offer insights into the monthly financial obligations you will undertake. The Total Monthly Payment gives you an overall view of the monthly expense, while the Total Lease Cost represents the entire cost for the lease period.

Use these insights to make informed decisions about your vehicle lease terms and affordability.