Work out what an advance actually costs
Enter the offer you have been given. This shows total payback, the real cost in dollars, and what each payment takes out of the business.
What it costs to clear early
We apply an early payoff discount at 30, 60 and 90 days. Most factor-rate funders apply none, so ask for these three figures on any offer before you sign. The exact discount depends on the file — the figures above show the balance still outstanding at each point, which is what a discount is applied against.
Reading this honestly: a factor rate is not an APR. The number that matters is total dollars repaid and what the payoff drops to if you clear it early. Why factor rates and interest rates are not comparable →
Compare two offers side by side
Enter both offers exactly as written. Net cash is what lands in your account; total payback is gross amount × factor. Dividing total payback by net cash shows what each dollar you actually receive costs.
APR needs actual payment dates and cash flows, so it is not shown here. Ask each funder for its early-payoff terms in writing — we apply an early payoff discount at 30, 60 and 90 days.
Factor rate vs interest rate, in plain terms
A factor rate is a flat multiplier. A 1.30 factor on $50,000 means $65,000 is repaid, whether that takes six months or twelve. An interest rate is charged over time on the balance still owed, so paying faster usually means paying less. That is why a factor rate cannot be compared to an APR by looking at the two numbers side by side. Compare total dollars repaid, the cash you actually receive after fees, and the size of each payment.
Does paying early reduce the cost?
It depends on the agreement. With a flat factor rate the full payback is usually owed no matter how fast you repay, unless the offer includes an early payoff discount. Some offers do, and many don't. In the funder guidelines we have on file, one term loan product takes 50% off the remaining interest on a full early payoff. Before you sign anything, ask the funder in writing what you would owe if you cleared it at 30, 60 and 90 days.
What the output is telling you
Total payback is everything you will repay. Cost of the money is that figure minus what you received — the actual price. Taken per month is the number that decides whether the business can carry it, and it is the one most people fail to check before signing.
If the monthly number looks too high
That is useful information, not a dead end. It usually means the file should be pointed at a different product rather than a smaller advance.
A term loan at 0% origination with weekly payments carries a materially lower monthly burden at the same funded amount — if you clear 3 years in business and a 650 credit score.
Check which tier you land in: the published requirements →
Compare MCA offers by net cash, total cost and payment pressure
A factor rate alone can rank two offers backwards. The better offer is often the one that leaves more usable cash in the account and takes a smaller share of deposits each week, not the one with the lowest multiplier. Run every offer through the same three questions.
1. Net cash: what actually reaches your account
Start from the gross advance. Subtract every fee listed in the contract, then subtract any existing balance the new funder pays off at closing. What is left is net new cash.
2. Total cost: purchased amount minus what you received
The purchased amount (advance × factor rate) is what the funder collects from your receivables. Your cost is the purchased amount minus the gross advance, plus the fees.
3. Payment pressure: share of monthly deposits
Convert each remittance to a monthly figure and divide by average monthly deposits. Include debits from advances that stay open, because they keep pulling after the new one funds.
Two illustrative offers, side by side
A business deposits about $120,000 a month and already carries an advance debiting $350 a business day with $18,000 left on it. Both offers and both funders are fictional.
| Offer A | Offer B | |
|---|---|---|
| Gross advance | $50,000 | $60,000 |
| Factor rate | 1.30 | 1.35 |
| Fees in contract | $1,500 | $1,500 |
| Existing balance paid off | None, the old advance stays open | $18,000 |
| Net new cash | $48,500 | $40,500 |
| Purchased amount | $65,000 | $81,000 |
| Cost (purchased − advance + fees) | $16,500 | $22,500 |
| Remittance | About $516 per business day for 126 days | $2,531.25 weekly for 32 weeks |
| October 2026 debits, new offer only | 21 days = $10,836 | 5 Fridays = $12,656 |
| Plus old advance in October | 21 × $350 = $7,350 | $0 (paid off) |
| Share of $120,000 deposits | 15.2% | 10.5% |
Illustrative figures only, rounded to the dollar. October 2026 has 21 bank business days (Columbus Day excluded) and five Fridays. These are not offers and do not reflect any funder's pricing.
Offer A looks cheaper on paper. It wins on cost and on net cash, but it stacks a second daily debit on top of the first, so the account carries more than 15% of deposits in remittances. Offer B costs $6,000 more yet retires the old debit. If the business is struggling to keep balances positive, B may be the safer contract. If cash on hand is the goal and margins are wide, A may be. The point of the comparison is to make that trade-off visible.
Check your own payment pressure
Uses an average of 21.7 business days or 4.33 weeks a month. Nothing you type here is sent anywhere.
Questions to ask before you sign
- Is the remittance a fixed amount or a percentage of receivables, and how do I request a reconciliation if sales drop?
- Which fees come out of the advance at closing, and are any charged later (per-debit, returned-payment, wire)?
- Is any existing balance being paid off, and will I get the payoff letter?
- Does the contract allow early payoff, and is any part of the purchased amount discounted if I do?
- When am I eligible to renew, and does a renewal pay off the remaining balance from the new advance?
- What counts as a default: a blocked debit, switching bank accounts, taking another position?
What this comparison cannot tell you
An advance with variable remittances has no fixed term, so there is no honest single APR to compare against a loan. The calculator shows cost in dollars and pressure on deposits; your contract governs everything else. When you are ready, see what a funding review involves →
How it works
1. Apply in minutes
A short application. No impact to your credit score to see what you qualify for.
2. Same-day decision
We review revenue, time in business and bank activity — not just a credit score.
3. Review your terms
You see the amount, the term and the total cost before you sign anything.
4. Funded next business day
Money in your account, typically the next business day after signing.
Common questions
How do I calculate a factor rate?
Multiply the amount advanced by the factor rate. $50,000 at 1.35 is $67,500 in total payback, so the cost is $17,500.
Is a factor rate the same as interest?
No. A factor rate is fixed at funding and does not accrue over time. Interest is charged on the balance still outstanding.
What is a good factor rate?
Most advances land between 1.15 and 1.50. The lower figure generally requires stronger revenue, longer time in business and a cleaner bank statement.
Does paying off early reduce a factor rate?
With us yes — we discount at 30, 60 and 90 days. Most factor-rate funders do not, so confirm it in writing.
Is this an offer?
No. It is a calculator. Actual terms depend on your file.