Factor Rate to APR Calculator
A factor rate is quoted against the original advance and never goes down — but you start repaying immediately, so you never have the full amount for the full term. This converts the quote into a number you can compare with a loan.
Why the two numbers differ: a factor rate is charged on the original advance and never comes down, but you start repaying immediately — so you never have the full amount for the full term. The APR reflects what the money actually costs given how fast you give it back. A shorter term at the same factor rate is more expensive, not less.
Estimates only. Actual rates, terms and payments are set by the lender and depend on your business, your credit and the product. Nothing here is an offer of credit or financial advice.
How this calculator works
The total payback is the advance multiplied by the factor rate, and the cost is that payback minus the advance. The calculator spreads the payback over daily or weekly payments for the term you expect.
It then finds the annual rate that matches those payments, the same way an APR is worked out for a loan. Because repayment starts right away, the APR is far higher than the factor rate suggests.
Worked example
A $50,000 advance at a 1.30 factor repaid daily over 9 months means $65,000 in total — and works out to about 73% APR.
Estimates only. Actual offers depend on the lender, your business and the final terms.
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