Updated · LoanHelp editorial team · Editorial policy
A factor rate is multiplied by the amount you receive to get total payback — for example, a 1.30 factor on $50,000 received means $65,000 back before any separate fees. The shorter the repayment window, the higher the effective annual cost for the same factor. Enter your offer’s numbers below to see total cost, payment pace, and an estimated APR from those inputs only.
How factor rates work
Total payback equals the amount you receive times the factor rate. Divide that payback by the number of daily or weekly payments in your contract to get the debit size — or enter the term in months and let the tool count weekday or weekly payments.
To stack this offer against a line of credit or term loan, use compare financing offers or read factoring vs line of credit vs MCA for the same Reg Z nominal APR method on equal schedules.
The estimated APR follows the unit-period method in Regulation Z, 12 CFR 1026.22 on the CFPB site: the per-payment rate times the number of payments in a year.
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FAQ
- What is a factor rate?
- Many merchant cash advances and some short-term offers quote a factor rate — a multiplier applied to the amount you receive to get total payback. A 1.30 factor on $40,000 received means $52,000 back over the schedule in your contract, before any separate upfront fees.
- How is estimated APR different from the factor rate?
- Estimated APR uses the Regulation Z nominal method: treat the amount received minus any upfront fees as the cash you get, solve the per-payment rate that your payments repay, then multiply by 260 for weekday daily debits or 52 for weekly. It is an estimate from your inputs, not a quote.
- Should I use term in months or payment amount?
- Use whichever matches your term sheet. If the funder gave a fixed daily or weekly debit, enter that payment and frequency. If you only have a calendar term, enter months and pick daily (weekday) or weekly to match the contract.
- Where do upfront fees go?
- Enter fees you pay separately at signing (not withheld from proceeds). They add to total cost in dollars and raise the estimated APR, but they do not change total payback.
- Can LoanHelp approve or change my factor rate?
- No. LoanHelp does not set rates or approve financing — our trusted financing partner reviews inquiries separately. Use this tool with numbers from your own offer, then compare options or submit an inquiry when you are ready.