Factor to APR Calculator

Convert Factor Rates to APR Instantly

Many short-term loans or merchant cash advances advertise a factor rate instead of a traditional interest rate. While factor rates may look simple, they often hide the true cost of borrowing. Our Factor to APR Calculator helps you reveal the effective annual percentage rate (APR) — so you can compare apples to apples when evaluating business loan offers.

Why Convert Factor Rate to APR?

• True cost transparency – APR includes time and fees
• Compare loan offers accurately
• Avoid expensive borrowing traps
• Make smarter financing decisions

How It Works

Enter your factor rate, loan amount, and loan term. The calculator instantly converts your factor rate into an equivalent APR based on your repayment schedule. It’s an essential tool for evaluating merchant cash advances and short-term working capital loans.

Who Is This For?

• Small business owners exploring funding options
• Borrowers comparing traditional vs. alternative loans
• Anyone who received a factor rate quote and wants clarity