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MCA · 6 min read

Factor Rates Explained: How to Read an MCA Offer

A factor rate is not an interest rate. Here is how to turn it into a number you can actually compare.

DT DollarHub TeamFunding Specialist · Sep 13, 2026

Overview

A factor rate is a simple multiplier: multiply the advance by the rate to get your total payback.

Factor rate calculatorDrag the sliders to see what an advance really costs.
Total payback$65,000
Cost of capital$15,000
Est. business days to repay~217 days

What to know

Every business is different. Start by understanding your monthly cash flow, what the funds are for and how quickly you need them. Then compare the total cost of each option, not just the headline rate.

Next steps

Have questions? Our AI agent can walk you through your options in a couple of minutes.

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