Calculator
Factor Rate to APR Calculator
Translate factor-rate pricing into a true-cost estimate
A factor rate hides cost inside total payback instead of showing an interest rate. This calculator converts factor-rate financing into total repayment, finance cost, monthly equivalent payment, and a simple APR estimate.
- ✓Converts factor rate into total payback and finance cost
- ✓Includes origination or broker fees in net proceeds
- ✓Estimates simple APR for comparison against loan offers
$100,000
1.35x
12 mo
3.0%
Total Payback
$135,000
Finance Cost
$35,000
Simple APR Estimate
36.1%
Monthly Equivalent
$11,250
11.3% of advance
Frequently Asked Questions
What is a factor rate?
A factor rate is a multiplier applied to the advance. A 1.35x factor on $100,000 means the borrower repays $135,000.
Why is the APR often high?
Because the full fee is fixed upfront and often repaid quickly. Short payback periods make the annualized cost much higher.
Is this exact APR?
It is a simple APR estimate for comparison. Daily payments, holdbacks, fees, and prepayment rules can change the true effective cost.