Business Funding Comparison Calculator

What is a business loan comparison calculator?

A business loan comparison calculator normalizes two funding offers, however they are priced, into the same four numbers: total payback, total cost of capital, cents on the dollar, and an approximate annualized cost. Once both offers speak the same language, you can see which one actually costs fewer dollars and which payment schedule fits your revenue.

How do you calculate the total cost of capital?

Subtract the amount you receive from the total you will repay. For a factor rate offer, total payback is the amount times the factor rate. For an APR loan, it is the monthly payment times the number of payments. The difference between total payback and the amount funded is your total cost of capital.

How do you compare a factor rate to an APR?

Convert both offers to total dollars rather than converting one rate into the other. A factor rate is a fixed multiplier on the amount funded, while APR accrues on a shrinking balance, so the two formulas measure different things. Total payback, total cost, and cents on the dollar put them on identical footing.

One honest caveat: because an amortizing loan’s balance declines as you pay it down, the simple annualized figure this calculator shows will read lower than the loan’s quoted APR. That is expected, and it is why we compare offers on total dollars first. For the full conversion walkthrough, see our factor rate guide.

What does cents on the dollar mean?

Cents on the dollar is the total cost of capital divided by the amount funded, expressed per dollar borrowed. If $50,000 of funding costs $12,500, you are paying 25 cents for every dollar you use. It is the quickest way to compare offers of different sizes fairly.

How is the approximate annualized cost calculated?

We divide the cost per dollar by the term in months and multiply by 12. Example: 25 cents on the dollar over 8 months is 0.25 ÷ 8 × 12, roughly 37.5% per year. It is approximate, for comparison only, and is not an APR, a quote, or an offer.

Worked example: a factor rate quote vs a payback quote

Offer A: $50,000 at a 1.25 factor rate over 8 months, paid each banking day.

• Total payback: $50,000 × 1.25 = $62,500
• Total cost of capital: $62,500 − $50,000 = $12,500
• Cents on the dollar: $12,500 ÷ $50,000 = 25.0¢ per $1
• Approx. annualized cost: (0.25 ÷ 8) × 12 = 37.5%
• Est. daily payment: $62,500 ÷ (8 × 21 banking days) = $372.02

Offer B: $50,000 with a quoted $60,000 total payback over 12 months, paid weekly.

• Total cost of capital: $60,000 − $50,000 = $10,000
• Cents on the dollar: $10,000 ÷ $50,000 = 20.0¢ per $1
• Approx. annualized cost: (0.20 ÷ 12) × 12 = 20.0%
• Est. weekly payment: $60,000 ÷ (12 × 4.33 weeks) = $1,154.73

On these numbers Offer B wins on both cost and payment size, but that is not a rule. A shorter term often means less total cost and a heavier payment at the same time, and only your bank balance knows which trade you can afford. Run your real quotes above and read both columns, not just the verdict line.

How do you read the numbers funders quote?

Ask every funder for the same three numbers in writing: the amount you will receive after any fees, the total you will repay, and the exact payment with its frequency. Any quote, whatever its format, reduces to those figures, and a funder who will not provide them is telling you something important.

Five questions to ask before signing

• What is the total payback in dollars, including every fee?
• What exactly leaves my account, how often, and starting when?
• What happens if I pay off early: is there a discount, or do I owe the full amount?
• Is the cost fixed up front, or does interest keep accruing on the balance?
• Are there origination, wire, ACH, or renewal fees not shown in the rate?

Different products answer these questions differently: compare merchant cash advances, term loans, and lines of credit side by side, or read our plain-English breakdown of MCA vs term loan vs line of credit before you take either offer.