Factor Rate → APR-Equivalent Calculator
Merchant cash advances are quoted as a factor rate, not an APR. Convert one into the other so you can compare it apples-to-apples with a business credit card or loan.
Factor Rate → APR-Equivalent Calculator
Translate a merchant cash advance factor rate into an APR you can compare against a business credit card, line of credit, or term loan.
APR-equivalent (simple-cost)
~37.3%
True amortizing APR runs higher — approximately 60% accounting for daily principal paydown.
- Total repayment
- $64,000
- Cost of capital
- $14,000
- Estimated daily debit (~189 business days)
- $339/day
Why both APRs? The "simple-cost" APR is the comparable number on offer sheets — the "amortizing" APR is what you’d compare to a term loan that pays down principal as you go. Use the simple number for vendor comparison, the amortizing number for true-cost reasoning.
Educational estimate only. Actual quoted rates and terms depend on lender underwriting, your file (credit, time-in-business, revenue, deposits, existing debt), and current market conditions. Ranges vary by lender and jurisdiction. ClearValue Cards is not a lender, broker, or financial advisor — the lender makes the final credit decision on file. Not a binding pre-qualification and not an offer of credit.
Need the fuller version?
The full Factor Rate → APR calculator adds term-unit, payback-structure, origination-fee, and holdback inputs, plus a benchmark comparison against a 10% APR term loan. Or take the quiz to find your match among business credit cards.
FAQ
Why isn't a factor rate the same as an APR?
A factor rate is a flat multiplier on the amount advanced (e.g. 1.28 means $1.28 repaid per $1 funded), with no time value built in. An APR is annualized and reflects that principal typically declines over the repayment term. The same factor rate produces a very different APR depending on the term — shorter terms mean a higher effective APR for the same factor.
Why two APR numbers — 'simple' and 'amortizing'?
The simple-cost APR is the number you'll usually see quoted or can back into from an offer sheet. The amortizing APR estimates the true cost accounting for daily principal paydown (since you're financing a shrinking balance at the same factor) — it's the more accurate number to compare against a term loan or business credit card's stated APR.
Is this a binding quote?
No — it's an educational estimate. Actual terms come from the funder's offer, and business-financing APR disclosure rules vary by state (see California DFPI and New York DFS for two states with statutory commercial-finance disclosure requirements).