Factor rate calculator

A factor rate is not an interest rate. Enter the numbers from your offer to see the cost in dollars and an estimated yearly cost (%). Educational tool: the result is an estimate, not an offer or advice.

The formulas

1. Total payback = amount × factor rate
2. Cost of financing = total payback − amount + fees
3. Payment = total payback ÷ number of payments (business days: 21 per month; weeks: 52 ÷ 12 per month)
4. Estimated yearly cost (%) = the per-payment rate that discounts the payments back to the cash you actually receive (amount − fees), found by iteration, times payments per year

An official APR may differ from this estimate: lenders can include other fees, and a cash advance may not have a fixed term. Ask the lender for the total cost in writing.