How to Convert the Lease Rate Factor to an Interest Rate

Step 1

Find the lease rate factor in your loan documents from the car dealership or financier. It should be a decimal, such as 0.0004.

Step 2

Multiply the lease rate factor by 2,400. For example:

0.0004 x 2400 = 9.6

The interest rate in this case is 9.6 percent.

Step 3

Recalculate the equation to eliminates the chances of mathematical error. And just to be 100 percent sure, perform the equation in reverse:

9.6 / 2400 = .004

The calculations were correct. The interest rate is 9.6 percent.