Free calculator

MCA factor rate to APR calculator

A factor rate hides the real price of an advance. Enter the amount, the factor rate and the term to see what you pay back and what that is as an annual rate.

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The cash you actually received.

On the contract, e.g. 1.35 means you repay $1.35 per $1.

Day 0
Ends on day 180

How many days the remittances run. Drag, use the arrow keys or pick a common term.

Total payback

$67,500

Advance × factor rate

Cost of the advance

$17,500

Payback minus advance

Simple annualized rate

71%

Cost ÷ advance × 365 ÷ term days. Not a compounded APR; the true cost of a daily-remittance advance is higher because the balance falls while the fee does not.

Average daily payment

$375

Payback ÷ term days

How the math works

Payback is the advance times the factor rate. The cost is payback minus the advance. The simple annualized rate spreads that cost over a year: cost ÷ advance × 365 ÷ term days. It is a floor, not an APR: because you repay a little every day, the money you actually hold shrinks while the fee stays fixed, so the effective rate is higher still.

What it does not include

Origination fees, ACH fees, early-payoff discounts and any default charges on your contract. Read the contract for those and add them to the cost. Run the Debt Check to see all your advances together against your revenue.
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See every advance against your revenue.

The Debt Check combines your advances, remittances and the public UCC record into one report.