The factor is their number. The APR is yours
Turn any factor rate and term into the true effective APR, priced over the real daily debit the same way the platform prices every offer. No signup, no credit pull.
TILA-method APR (IRR annualized) over the real debit schedule, not the factor.
A factor rate hides the real cost. The same $100k at 1.40 over 12 months prices near 70% APR once you account for the daily debit, because you repay while your balance is still high. Estimates only, not an offer.
Factor rates, in plain terms
Is a factor rate the same as an interest rate?
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No. A factor rate is a multiplier on the amount funded. A 1.40 factor on $100,000 means you repay $140,000 in total, regardless of how fast you pay it. Because you repay on a daily or weekly debit while your balance is still high, the true annualized cost (APR) is far higher than the factor implies.
How do you calculate the true APR?
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This tool solves the internal rate of return over the real repayment schedule, then annualizes it the way the Truth in Lending Act defines APR. It is the same pricing engine the platform uses to compare offers, not the flat total-cost-over-years shortcut that under-reports the number.
Why is my MCA APR so high?
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A short term plus a fixed total payback means the money is expensive per year. A 1.40 factor repaid over 12 months on a daily debit prices near 70% APR. The shorter the term for the same factor, the higher the APR, because you give the money back faster.
You estimated it. Now see it read from your account
A factor rate is only half the price of an advance. Connect the bank once and New Matrix reads the real figures off your statements, scores the file, and lines up the funders whose rules it clears. Free to join, no advance fees.