Factor Rate to APR Converter | Full Send Funding

You need to enable JavaScript to run this app.Factor Rate to APR ConverterTotal payback = amount funded × factor rate. Put an offer's own numbers in and see what it costs: in dollars, as a share of the money that actually lands, and annualised both ways the industry quotes it.Free to use, with no sign-up and no email address. The figures you enter stay in your browser — they are not sent anywhere and they are not stored.How this is calculated

Money received is the amount funded less any fee deducted at disbursement. It is the denominator for everything below — never the face amount.

Total payback is the amount funded times the factor rate, because the factor multiplies the face amount. A fee deducted at funding reduces what lands without reducing what is repaid: $100,000 at 1.30 with a 3% fee nets $97,000 and still costs $130,000.

Total cost is the total payback less the money received, and the cost percentage is that divided by the money received.

The payment is the total payback divided by the number of payments, counting 52 weekly, 26 bi-weekly, 12 monthly or 252 daily payments a year — daily on banking days, which is how a daily remittance is actually debited.

The APR is the periodic rate that discounts that payment stream back to the money received, solved by bisection and multiplied by the number of periods in a year. The effective annual rate compounds that periodic rate across the year instead.

The terms on this page

Factor rate — The multiplier that fixes an advance's total cost at signing: advance × factor = payback, so a 1.30 factor on $100,000 is $130,000 back. A price, not an interest rate — it does not accrue, does not compound and does not shrink on early repayment unless the agreement grants an early-payoff saving.

Annual percentage rate (APR) — The cost of credit as a yearly rate relating the amount received to the amount and timing of the payments. Under the actuarial method the periodic rate is the one that discounts the payment stream to the amount financed, multiplied by the number of periods in a year.

Net funded amount — What actually lands in the account after every fee deducted at disbursement. The denominator every comparison should use — never the face amount of the advance.

Holding-period effect — Because the fee is fixed, compressing the same dollar cost into a shorter term raises the annualised rate. The reason early payoff of a fixed-fee advance with no early-payoff saving costs more per year, not less.

Estimated APR — The annualised figure New York and California now require providers of sales-based financing to disclose alongside the total dollar cost, computed on an estimated term because the true term depends on future sales.