Loan Cost Calculator

Your Estimated Loan Cost

A Lower-Cost Option May Be Available

Based on these numbers, a different loan product could save you money.

Your funding specialist will compare options across 70+ lenders and help you find the best fit for your timeline, credit profile, and cash flow.

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Your actual rate depends on your business profile. See what 70+ lenders will offer you.

Business loans are priced in two fundamentally different ways: factor rates and APR. A factor rate is a simple multiplier — borrow $100,000 at a 1.25 factor rate and you repay $125,000 regardless of how quickly you pay it back. APR (Annual Percentage Rate) expresses the cost as an annualized interest rate, which accounts for compounding and the length of the loan. The same loan can look dramatically different depending on which metric you use, which is why comparing offers requires converting everything to a common format.

Factor rates often appear more expensive when converted to APR because alternative lending products prioritize speed and accessibility over low cost. A working capital advance at a 1.30 factor rate over 6 months translates to roughly 60% APR — but it funds in 24 hours, requires no collateral, and accepts credit scores that banks would decline. The premium you pay reflects the reduced friction and risk the lender absorbs, not a predatory pricing structure.

Payment frequency is another factor that affects how a loan feels on your cash flow, even if it doesn't change the total cost. Daily payments of $198 are easier for most businesses to absorb than a single $4,200 monthly payment, even though both add up to roughly the same amount. For APR-based loans, more frequent payments can also slightly reduce total interest paid because principal is reduced faster.

The “cost per dollar borrowed” metric strips away all complexity and tells you exactly what you're paying for access to capital. If your cost is $0.25 per dollar, you're paying 25 cents for every dollar the lender puts in your account. This makes it easy to compare offers regardless of whether they use factor rates, APR, or origination fees — and helps you decide whether the cost is worth the speed and convenience.

Free Guide

How to Read a Business Loan Offer

Learn what to look for in a loan agreement — from factor rates and origination fees to prepayment penalties and stacking restrictions.

FAQ

Frequently Asked Questions

This free loan cost calculator helps business owners understand the true cost of financing before they apply. Whether you're evaluating a merchant cash advance, SBA loan, equipment financing, or working capital offer, the calculator breaks down total repayment, cost of capital, per-payment amounts, and cost per dollar borrowed in real time.

Unlike simple loan calculators, this tool lets you switch between factor rate and APR pricing, adjust payment frequency, and compare your cost against a traditional bank loan. Use it to understand how changing the term, rate, or frequency affects your overall cost — and to make informed decisions about which loan structure works best for your business.

Basecamp Funding connects businesses with 70+ lending partners offering working capital, term loans, SBA loans, equipment financing, lines of credit, and more. Pre-qualify in 60 seconds with no credit impact to see real offers tailored to your business profile.