Factor rate calculator

Type in the factor-rate quote and see what it costs as a yearly rate, against a normal business loan.

Why does a shorter term make it worse?

Because you pay the same $12,500 in half the time. On a 1.25 factor and $50,000, 6 months instead of 12 takes the yearly rate from 45.67% to 89.90%.

1.25 factor on $50,000	Each repayment	As a yearly rate
12 months, paid weekly	$1,202 a week	45.67%
6 months, paid weekly	$2,404 a week	89.90%
12 months, paid each business day	$240 a day	46.27%

Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.

Ask a broker for a loan with a yearly rate

Questions about factor rates

What is a factor rate?

It's a price stated as a multiple of what you borrow. A 1.25 factor on $50,000 means you repay $62,500.

Why is the yearly rate so much higher than the factor suggests?

You pay the charge on the full amount, but the amount you owe falls every week. So $12,500 on $50,000 looks like 25% and works out at 45.67% a year over 12 months.

Should I take a factor-rate loan?

Compare the total first: the same $50,000 from MTF Finance at 14.00% p.a. fixed over 12 months costs $8,353 less. Ask the lender for the yearly rate before you sign.