A 1.30 factor rate sounds like 30% — it is usually much more. Convert your factor rate into a real, comparable APR and see what your advance is actually costing you.
APR is solved from the payment cash flow (IRR) and annualized. Educational estimate only, not an offer of credit.
Lenders advertise factor rates because they look small. The APR is the honest comparison. If yours is high, we can refinance it.
Refinance my MCA →Full MCA CalculatorA factor rate is a flat multiplier: 1.30 on $10,000 means you repay $13,000, period. But APR measures the cost over time, accounting for the fact that you start repaying almost immediately and finish in months. Squeeze a 30% fee into 6 months of daily payments and the annualized cost can exceed 90%. That is why the same factor rate produces a wildly different APR depending on the term — shorter terms are more expensive in APR terms.
| Factor rate | Cost per $10k | ~APR (6 mo, daily) | ~APR (12 mo, daily) |
|---|---|---|---|
| 1.15 | $1,500 | ~50% | ~28% |
| 1.25 | $2,500 | ~85% | ~46% |
| 1.35 | $3,500 | ~120% | ~64% |
| 1.45 | $4,500 | ~155% | ~82% |
Figures are illustrative estimates; use the calculator for your exact inputs.
You cannot just subtract 1 from the factor rate — that ignores how fast you repay. The accurate way is to model the equal daily or weekly payments as a cash flow and solve for the annualized rate (IRR). This calculator does that for you, so a 1.30 factor rate paid over 6 months daily can translate to a much higher APR than 30%.
No. A factor rate is a one-time flat multiplier on the funded amount; interest accrues on a declining balance. That difference is exactly why MCAs feel deceptively cheap until you see the APR.
There is no legal cap on most MCAs, and effective APRs of 60-120%+ are common. If your converted APR is well above what a bank or alternative lender would charge, it is worth refinancing.
Yes. Merchant Fund Express is a direct funder and can buy out and restructure expensive advances. Convert your rate above, then apply for an honest 2-4 hour decision (require $15,000+/month revenue, 500+ FICO).