The money factor is a term commonly used in car leasing that refers to the interest rate charged on the lease. It is also known as the lease factor or lease rate. Unlike a traditional auto loan, a lease does not have an annual percentage rate (APR) that is used to calculate interest charges. Instead, the money factor is a decimal number that is multiplied by the lease balance to determine the finance charge for each month of the lease. The money factor is determined by the leasing company and is influenced by a number of factors, including the lessee's credit score, the length of the lease, the residual value of the vehicle, and the overall demand for the make and model of the car. To calculate the finance charge for a lease, you can multiply the money factor by 2400 and you'll get your interest rate. It's important to note that the money factor is just one of several factors that affect the cost of a lease, along with the negotiated selling price, the residual value, and any fees or taxes. Lessees should carefully review and compare all of these factors when shopping for a lease to ensure they are getting the best deal possible.