Calculator

Factor Rate to APR Calculator

A 1.35 factor is not "35% interest." Convert any factor-rate offer, revenue-based financing, short-term advances, factoring, into an annualised cost you can compare against a real loan.

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01 / The Offer

Advance amount

The cash you actually receive, after any origination fee is netted out.

Factor rate

Typically 1.15–1.50. Enter 1.35 for a 1.35 factor.

Additional fees (optional)

Origination, administrative, or ACH fees not already in the factor.

02 / Repayment

How is it repaid?

Remittance frequency

Monthly revenue

Percentage remitted (%)

The share of revenue collected until the full amount is repaid.

Payment amount per period

Calculated locally · Nothing transmitted

Annualised cost

The numbers

Before you sign

On most factor-rate agreements the fee is fixed at signing, so repaying early saves nothing, it raises your effective annual rate, because you paid the same fee over a shorter period. Ask whether an early-payoff discount exists, and get the answer in writing.

Is this the right tool for what you're funding?

Fast money is worth paying for when the thing it funds earns more than the fee inside the repayment window. It's punishing when it's covering a recurring gap.

See What Options a Credit Team Would Consider Factor Rates vs APR Have Us Read the Offer

Educational only. APR here is derived from the payment stream you enter and is an estimate for comparison. It is not a Truth in Lending disclosure, and actual disclosed APRs may differ. Not an offer of credit or a commitment to lend. Calculations run locally in your browser; no signup or account is required.