Calculator for any factor rate
Enter an advance quote's amount, factor rate, term and remittance schedule to see the total payback, the dollar cost, the daily or weekly remittance, and the APR a loan would need to match it.
- Each remittance
- $515.87× 126 business days
- Cost as a share
- 30%
- APR-equivalent
- 109.3%
- Naive annualised
- 60%
- You receive
- $50,000
- Bank loan, 12% APR
- $1,765same amount, same months
Illustrative, not an offer. Only the terms written into an agreement you sign apply to you. How this is calculated.
The working
Purchased amount = the amount multiplied by the factor rate. Cost = the purchased amount minus the amount. Each remittance = the purchased amount divided by how many remittances there are, counting 21 business days, 4.33 weeks or 1 monthly payment per month.
APR-equivalent is the yearly rate a loan with equal payments would have to carry for those same remittances, on that same schedule, to pay back the amount advanced; you solve for the rate per period and multiply by the periods in a year, which is how a loan's APR is stated. It comes out higher than the simple "cost × 12 ÷ months" estimate because you aren't holding the full amount for the whole term.
Fee: when a funder takes an origination fee out up front, the money you get is smaller than the amount, yet the purchased amount you pay back doesn't change; the calculator shows what actually lands in your account and measures the cost against that figure.
For the bank side we use a 12% APR, which sits in the middle of the 8–14% range qualified borrowers get on bank term loans, paid down monthly across the same term.
What is a factor rate?
The multiplier that sets what you remit on an advance: amount × factor rate = purchased amount. Apply a 1.30 factor to $50,000 and you pay back $65,000, which is $15,000 in cost. It is set when you sign and won't drop if you remit early, unless your agreement has an early payoff discount.
How can the factor rate look modest while the APR-equivalent comes out so much higher?
Because you pay it back over a short stretch, and the balance shrinks with every payment. On paper, paying 30% over six months works out to 60% a year, yet you never have the whole $50,000 for those six months, because some of it goes back every business day. In the example, the APR-equivalent is about 109.3%, meaning the rate a loan would need to produce the same payments on the same schedule.
Will a merchant cash advance cost less if I pay it off early?
Not by default. Because the purchased amount doesn't change, finishing in four months rather than six costs the same dollars but pushes the APR-equivalent higher. Discount for paying off earlys — typically 10–25% of the remaining purchased amount within a window — are worth asking for in writing before you sign.
What is a typical factor rate?
Most first-position advances land somewhere from 1.15 to 1.45. The number goes up with shorter terms, weaker deposits, negative days, existing positions and higher-risk industries. Anything over 1.49 is worth a second look and should be weighed against every other option you have.
Ready to see what your numbers come back as?
One request, three months of statements, options from our network of funding partners in plain dollars — or an honest note that a bank is your better route.