Enter your two offers
Use the numbers from each offer document. Leave a field at 0 if the offer has no such charge. All fields are numbers only.
How to read the five numbers
- Money you actually receive. The advance minus every fee taken out of it. This is the amount you can use, so it is the right base for comparing cost.
- Total payback. The advance times the factor rate. In a typical fixed-payback agreement this does not shrink if you repay sooner, so ask each funder in writing whether early repayment changes what you owe.
- Cost per dollar received. Total payback minus the money you receive, divided by the money you receive. A result of 0.34 means you pay about 34 cents for each dollar that reaches your account.
- Time to repay. The number of payments divided into months. A shorter repayment means the money is outstanding for less time, a longer one means more months of payments leaving your account.
- Share of deposits. What the payments add up to each month compared with your average monthly deposits. This is the number that shows whether a payment is realistic for your business.
The tool also shows an annualized equivalent. It exists because two offers can cost different dollar amounts over different lengths of time. It is a nominal figure computed from the payments you enter, assuming equal payments, 260 business days or 52 weeks a year, and fees deducted up front. It is for comparing these two offers with each other and is not an APR disclosure.
Why the lower factor rate can still cost more
The factor rate is only part of the price. The example pre-loaded above is illustrative, not a real offer or a typical one: both offers advance $50,000 and the payments are fixed amounts.
| Offer A | Offer B | |
|---|---|---|
| Factor rate | 1.30 | 1.25 |
| Fees taken from the advance | $1,500 | $4,500 |
| Money you actually receive | $48,500 | $45,500 |
| Total payback | $65,000 | $62,500 |
| Total cost | $16,500 | $17,000 |
| Cost per dollar received | $0.34 | $0.37 |
| Payment and number of payments | $500 a business day, 130 payments | $400 a business day, 157 payments |
| Repaid in about | 6.0 months | 7.2 months |
| Annualized equivalent (nominal) | about 123% | about 111% |
Offer B has the lower factor rate and the smaller payment, yet it costs $500 more in total and $0.03 more per dollar received, because its fees take $3,000 more out of the advance. It also takes about a month longer to repay. Its annualized figure is lower mainly because the money stays outstanding longer, which is why neither number should be read alone. The better fit depends on whether you need the larger daily cash relief or the lower total cost.
Where to find each input in an offer
- Advance and factor rate. Usually on the first page of the offer or the summary of terms. If only a payback amount is shown, divide it by the advance to get the factor rate.
- Fees. Look for origination, underwriting, administrative, processing or broker charges, and anything described as deducted from the funding. Add them together. Ask directly if a line is unclear.
- Payment amount or percentage. The contract states either a fixed daily or weekly amount or a percentage of receipts. A percentage usually moves with sales, so the tool uses the average you enter.
- Anything the tool does not ask for. Personal guarantees, default terms, lien filings and reconciliation rights are not price inputs, but they matter. Read them in the full contract. The guide to reading an MCA contract and the before-you-sign checklist cover them.
What this tool cannot do
- It cannot see your contract, so it cannot catch a term it was not asked about.
- It treats each payment as constant. Percentage-of-sales payments rise and fall, so the payoff time is an estimate.
- It assumes fees are deducted from the advance. If a fee is paid separately, add it to the fees field so that it counts as a cost.
- It does not tell you whether to take an offer, and it does not predict what you could be offered. Terms depend on the funding provider's review.
Questions people ask
Is the lower factor rate always the cheaper offer?
No. Fees taken out of the advance reduce the money you receive, so an offer with a lower factor rate can cost more per dollar you actually get. Compare total cost against net funding, not the factor rate alone.
Why does the tool show an annualized figure?
Two offers can be repaid over different lengths of time. The annualized equivalent adjusts for how long the money is outstanding. It is a nominal comparison figure based on the payments you enter, not an APR disclosure and not a quote.
What if my payment is a percentage of daily sales?
Choose the percentage option and enter your average monthly deposits. The tool converts the percentage into an average payment. Real payments rise and fall with sales, so treat the payoff time as an estimate.
Does the tool save or send what I type?
No. The math runs in your browser. Nothing you enter is sent to T.A.G. or stored.
Can this tell me whether an offer is a good deal?
It shows what each offer costs and how heavy the payments are for your deposits. Whether that is worth it depends on what the money earns or protects in your business and on the full contract, which this tool cannot see.
Want to see what funding options you could qualify for? Applying takes your four most recent complete, consecutive business bank statements.
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