Business loan and factor rate calculator
Enter the amount, factor rate and term to see your total repayment and estimated weekly and daily payments. No sign-up needed.
- You receive
- $50,000
- Cost of funding
- $10,000
- Weekly payment, approx.
- $1,154
- Business-day payment, approx.
- $238
Illustration for term funding and merchant cash advances, assuming about 21 business days per month. Your actual factor rate, term and schedule are set by the lender after review.
How factor rate pricing works
Total repayment = amount funded × factor rate. That's it. A factor rate is a fixed multiplier, so the total you repay is known before you sign and does not grow over time.
Compare this with an interest rate, where cost builds up the longer you borrow. With a factor rate, a longer term only lowers each payment.
- Merchant cash advance
- A lump sum a business receives in exchange for a share of its future sales. It is repaid automatically, as a percentage of card sales or through fixed daily or weekly payments, until a total agreed upfront is paid.
- Factor rate
- A decimal, usually between 1.10 and 1.50, multiplied by the amount funded to give the total repayment. $50,000 at 1.20 means $60,000 repaid in total. Unlike interest, the total does not grow over time.
- Working capital
- The cash a business has for day-to-day operations such as inventory, payroll and rent. Working capital funding adds cash for these needs during slow months, busy seasons or while waiting for customers to pay.
Calculator questions
How do I calculate the cost of a merchant cash advance or business loan?
Multiply the amount funded by the factor rate. $50,000 at a factor of 1.20 gives a total repayment of $60,000, so the cost of funding is $10,000.
Does a longer term cost more?
No. With a factor rate the total repayment is fixed upfront. A longer term spreads the same total over more payments, so each payment is smaller.
How is the weekly payment estimated?
The calculator divides the total repayment by the number of weeks in the term (about 4.33 weeks per month). Business-day payments assume about 21 business days per month.
What factor rate will I get?
Factor rates typically range from 1.10 to 1.50. Your rate is set by the lending partner after reviewing your revenue, time in business and other factors.
Ready for your exact numbers?
The lending partner sets your real factor rate after a short review. Free, with no obligation.