Tools
MCA Calculator
Convert factor rates to annual percentage rates (APR) to understand the true cost of your merchant cash advance.
Calculator
Calculate Your APR
Understanding Factor Rates vs APR
Factor rates (like 1.35) look simple, but they don't tell you the annual cost. A factor rate of 1.35 means you pay back $1.35 for every $1.00 you borrow.
APR (Annual Percentage Rate) converts that cost to an annual percentage, making it easier to compare MCAs to loans and other financing options.
Example: A $50,000 advance with a 1.35 factor rate paid back over 90 days has an APR of approximately 142%. That's much higher than most business loans.