Factor rate to APR, instantly.
Enter a factor rate and a term. See the simple APR brokers quote and the true APR-equivalent it really costs. An estimate for comparison, not a contractual APR.
True APR-equivalent
0%
About 0x the simple 0% brokers quote.
APR-equivalent (estimate for comparison only, not a contractual APR).
Simple APR
What brokers quote. It understates the real cost.
Cents on the dollar
Cost per $1 advanced. Locked in by the factor.
Total payback
What you repay over the life of the advance.
Total cost (the fee)
Payback minus what you received.
Payment
per business day
Simple vs true vs effective
This is an estimate based on the numbers you entered, not an offer of credit or a commitment to fund.
Estimates only. Actual terms vary by underwriting. No credit pull to start.
Want payoff dates, charts, red flags, and side-by-side comparison? Open the full MCA Cost & True-APR Calculator.
Open the full calculator→No pressure
Nothing to decide today. When you want a real number for your business, it is a two-minute review with no credit pull.
If the number looks high
The number is high because the term is short. A line of credit or a longer structure may cost less. See your options, no credit pull to start.
Factor rates and APR, explained
Multiply the advance by the factor rate. A $40,000 advance at 1.30 means $52,000 of receivables purchased, a $12,000 cost of capital.
It is structured as a purchase of future receivables, not a loan, so it is priced with a flat factor rate. You can still estimate an APR-equivalent to compare it against loan products.
It is the annualized cost of the actual payment stream, shown only so you can compare an advance to a loan or line of credit. It is an estimate for comparison, not a contractual APR.
Because you repay the whole time, your average balance is far below the advance, so the real annualized cost runs well above the simple figure, often more than 1.5 times higher.
No. It is an estimate based on the numbers you enter. Actual terms vary by underwriting, and there is no credit pull to start.