MCA factor rate calculator

payback (RTR)      = advance × factor rate
origination fee    = advance × fee %
net funding        = advance − fee − other fees − payoffs
cost of capital    = payback − net funding
effective factor   = payback ÷ net funding
payments           = term in months × payments per month
payment            = payback ÷ payments (last payment absorbs the rounding)

A factor rate is a multiplier, not an interest rate. A 1.35 factor on $50,000 means the merchant remits $67,500 no matter how fast it is paid, unless the contract offers an early payoff discount.

The fee matters more than it looks. The merchant pays back on $50,000 but only receives $48,000, so the effective factor on the cash they actually get is 1.406, not 1.35.

The APR shown is an estimate: the internal rate of return of the payment schedule against the net funding, annualized over 252 payment days a year for daily payments (52 for weekly). It shows why short terms make the same factor rate expensive: the same 1.35 paid over 12 months gives a much lower APR than over 6.

• Check affordability: multiply the payment by payments per month and divide by monthly true revenue to get the holdback.
• Compare offers on net funding and cost of capital, not on factor alone. A lower factor with a bigger fee can cost more.
• If the deal pays off existing positions, put the payoff in so net funding shows what the merchant really receives.

In the app, every offer on a deal is worked out this way and stored with the deal, side by side with the other lenders' offers. See the offer calculator.