Rate Calculator
Factor Rate to APR Calculator
Enter your advance details to see the equivalent annual percentage rate and full cost breakdown — so you can compare an MCA against other funding options on equal footing.
Typically between 1.10 and 1.50 for most MCAs
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APR Reference Table
Equivalent APR for common factor rate and term combinations. Shorter term = higher APR, even at the same factor rate.
| Factor rate | 60d | 90d | 120d | 150d | 180d |
|---|---|---|---|---|---|
| 1.15 | 91% | 61% | 46% | 36% | 30% |
| 1.20 | 122% | 81% | 61% | 49% | 41% |
| 1.25 | 152% | 101% | 76% | 61% | 51% |
| 1.30 | 183% | 122% | 91% | 73% | 61% |
| 1.35 | 213% | 142% | 106% | 85% | 71% |
| 1.40 | 243% | 162% | 122% | 97% | 81% |
| 1.50 | 304% | 203% | 152% | 122% | 101% |
Why convert a factor rate to APR?
Apples-to-apples comparison
A factor rate of 1.30 sounds cheap until you realize a 120-day term makes it a 91% APR. Converting to APR lets you compare an MCA directly against a line of credit, short-term loan, or SBA option — all of which quote annual rates.
The term matters as much as the factor rate
A 1.25 factor rate over 60 days is a 152% APR. The same 1.25 factor rate over 180 days is a 51% APR. The total dollar cost is identical — but the cash flow impact and the true annualized cost are completely different.
APR alone does not tell the full story
A 90% APR MCA that funds a $20,000 event generating $50,000 in revenue is a profitable decision. The same advance used to cover recurring operating losses is not. APR is a comparison tool — the real question is whether the funded opportunity justifies the cost of capital.
Frequently asked questions
Related resources
MCA vs. Business Loan
Side-by-side comparison of cost, speed, structure, and when each makes sense.
Merchant Cash Advance Guide
How MCAs work — factor rates, ACH repayment, and what lenders look for.
Break-Even Calculator
See if an advance's cost is justified by the opportunity it funds.
Financial Health Checklist
Score your business on lender-readiness factors before applying.