Factor Rate to APR Calculator

Enter an offer and see what it really costs. The calculator converts a factor rate into total dollars and APR-equivalent, then prices a credit-to-cash conversion (8.5% flat fee) and a 12% APR term loan on the same amount, using the methodology behind every comparison on this site.

How the math works

Total cost of a factor-rate advance is the advance amount multiplied by the factor. The APR-equivalent annualizes that cost over the repayment window: cost divided by amount, divided by the window's fraction of a year. No compounding, no hidden fees — the same simple model our methodology applies to every comparison.

Credit-to-cash is modeled as a single 30-day utilization: the flat fee applies once to the drawn amount, because repayment follows your normal card cycle rather than a deduction schedule. The term loan accrues simple interest at 12% over the same window.

Reading the result

A factor rate sounds small because it is quoted without time. A 1.3 factor is "30 cents on the dollar" only until you annualize it: over six months it prices at roughly 55-65% APR-equivalent, several times the rate of every bank alternative. If the calculator shows a gap you cannot close with cheaper funding, check the full alternatives guide before you sign.