Factor rate to APR converter
Convert a factor rate into an approximate APR so you can compare short-term financing offers on the same basis. A factor rate multiplies the funded amount to get total payback; APR expresses that cost per year, which depends heavily on how short the term is.
$10K$2M
1.051.60
3 mo24 mo
Approximate APR
- Total payback
$62,500$62,500 - Cost of capital
$12,500$12,500
Calculated from equal payments over the term, fees excluded. Compare the dollar cost too.
How is this calculated?
- Total payback = funded amount × factor rate.
- Payment = payback ÷ number of payments in the term.
- APR is the periodic rate that discounts those payments back to the funded amount, annualized.
Estimates are good. Offers are better.
See your real amount, rate and payment with a soft credit check. Decisions the same day.