Find Me Funders
Two offers priced differently, on one page
One quotes a factor, one quotes an APR, and the fees sit somewhere else entirely. Put both in and see them in the same units.
Compare two offers priced differently
A factor rate and an APR cannot be compared as rates. They can be compared as dollars. Enter both and read the bottom row.
| Offer A | Offer B | |
|---|---|---|
| Net cash in hand | — | — |
| Total you repay | — | — |
| Monthly payment | — | — |
| Cost in dollars | — | — |
Net cash in hand is what actually reaches your account after fees, which is the figure the cost should be measured against. A cheaper headline rate on a longer term frequently costs more in dollars.
The hardest part of choosing between two funding offers is that they are almost never quoted in the same units. One gives you a factor, another an interest rate, a third a total repayment, and every one of them keeps some of the cost in a fee schedule on a different page.
Normalise them here. Enter each offer in whatever units it was given to you, add the fees, and the calculator restates both in dollars, in cost per dollar received, and annualised.
Where two offers are priced on genuinely incompatible measures, the calculator says so rather than forcing a single ranking. The dollar cost and the annualised rate can disagree about which offer is cheaper, and when they do, that disagreement is the useful information.
The terms in this calculator
Questions about the compare two offers calculator
Can I compare a factor rate and an APR directly?
Not as quoted. A factor has no time dimension and an APR is nothing but time. You can compare them once you fix the term for the factor-priced offer, which is what this calculator does — but the comparison is only as good as your estimate of how long the money is actually out.
Which number should decide it — total cost or annualised rate?
They answer different questions. Total cost tells you what the money costs. The annualised rate tells you what it costs per unit of time, which is the right lens if you are choosing between different terms. The cheapest total cost is sometimes the one with the payment you cannot make.
What if the two offers are for different amounts?
Compare cost per dollar received rather than total cost. A larger, cheaper-per-dollar offer can still be the wrong answer if you do not need the extra money, because you pay for all of it.
Where do I find all the fees?
Ask for them in writing, itemised, before you sign, and ask specifically for the net amount that will land in your account. Origination, underwriting, program, risk, ACH and closing fees are commonly quoted separately from the headline price, and together they move the answer.
Should I include a broker's fee?
Yes, if you are paying it. It is part of what the money costs you regardless of who receives it. If a broker's compensation is being paid by the funder out of the spread, it is already inside the price you were quoted.
Does a longer term always cost more?
In total dollars, usually yes. Per unit of time, usually no. That is why the two columns here can rank the same pair of offers in opposite directions.
What about a prepayment penalty?
Add it only if you expect to prepay. If there is a real chance you will, model it both ways — a penalty that never triggers costs nothing, and one that does can wipe out the savings that made the deal look better.
Can I compare three or more offers?
Run the comparison in pairs, keeping the winner each time. If you want lenders compared rather than offers, the directory does that side by side on published terms.
Is the annualised figure an APR in the regulatory sense?
No. A true APR has a legal definition and specific inclusion rules. This is an annualisation of the cash flows you entered, useful for comparison and not a disclosure.