US FinPulse • Deterministic Financial Models

Auto Loan vs. Lease Calculator (Truth in Lending Standard)

Compare the total cost of financing versus leasing a vehicle, factoring in money factors, residual value, and long-term equity.

Translating Dealership Money Factors to APR

Automobile lease contracts specify lease finance charges via a money factor (e.g. 0.00250). To convert this into an equivalent Annual Percentage Rate (APR):

Equivalent APR (%) = Money Factor × 2,400

For example, a money factor of 0.00275 equals an APR of 6.60%.