Factor Rate to APR Converter

Translate a factor rate into its equivalent annualised percentage rate (APR) so you can make an apples-to-apples comparison with traditional loan products.

Factor Rate (e.g. 1.20 – 1.45)

Estimated Repayment Term (months)

Why does APR matter for MCAs?

Factor rates can make financing appear cheaper than it is. Converting to APR lets you compare the true cost of an MCA against a bank line of credit or SBA loan. A 1.25 factor rate over 6 months is equivalent to roughly 50% APR — which may still be worth it if the capital generates sufficient return.

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