Business Funding Total-Cost Calculator
Some commercial financing is quoted with a factor rate rather than an annual interest rate. This calculator shows the dollar consequences of that structure. It does not convert a factor rate into APR.
Educational calculator
Estimate factor-rate funding cost
Estimated total financing cost
$14,000
- Net proceeds
- $48,500
- Total repayment
- $62,500
- Withheld fee
- $1,500
- 52 estimated payments
- $1,202 each
Accepted ranges: $1–$100 million, factor rate 1.00–3.00, fee 0%–99%, and 1–120 months. Values outside these limits are capped.
A factor rate is not an APR. This simplified estimate excludes other charges, irregular collections, reconciliation, renewals, defaults, and prepayment terms.
Why net proceeds matter
A fee withheld at funding means the business receives less cash than the stated advance while repayment may still be calculated from the full amount. Compare offers using both the cash received and the total dollars repaid.
Request complete written disclosures
- Amount advanced and exact net proceeds.
- Every fee and whether it is financed, withheld, or paid separately.
- Total repayment and payment frequency.
- Estimated number of payments and any reconciliation mechanism.
- Prepayment treatment, renewal conditions, and default provisions.
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