Factor Rate → APR Calculator
The full version — term-unit, payback-structure, origination-fee, and holdback inputs, plus a dollar-gap comparison against a 10% APR term-loan benchmark.
Factor Rate → APR Calculator
Convert a merchant cash advance or revenue-based-financing factor rate into an effective APR — comparable to a business credit card, line of credit, or term loan.
Effective APR
75%
True-cost APR accounting for principal paydown. Vendors typically quote the lower simple-cost number (37.3%) — both are correct, but the effective APR is the apples-to-apples comparison to a term loan.
- Total payback
- $64,000
- Cost of capital
- $14,000
- Periodic payment (per business day (≈189 debits))
- $339
- Vs a 10% APR term loan, same term
- +$10,250
If a lower-APR product fits your file, the switch typically pencils when its APR runs at least ~15 points below this effective APR.
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.
Just need a quick estimate?
Try the lighter factor rate → APR-equivalent calculator, or take the quiz to find your match among business credit cards.
FAQ
What's the difference between fixed-daily, fixed-weekly, and revenue-share?
Fixed-daily and fixed-weekly debit the same amount every business day or week regardless of your revenue. Revenue-share (a holdback %) debits a percentage of your card-processor deposits, so the payment — and the effective term — flexes with your sales. The calculator uses a slightly lower amortizing multiplier for revenue-share because holdback debits tend to pay down principal a bit more slowly on average.
Why compare against a 10% APR term loan?
10% is a reasonable reference point for a mid-band bank or SBA-adjacent term loan APR for a qualified SMB file — not a specific offer. The 'benchmark gap' shows, in dollars, how much more this MCA costs than that reference point over the same term, so you can judge whether it's worth pursuing a lower-APR alternative if your file qualifies.
Does the origination fee change the APR?
Yes — an origination or closing fee is a real cost of capital, so this calculator layers it into both the simple-cost and amortizing APR, not just the dollar total. Leaving it at 0% understates the true cost of a deal that charges one.