How to use this calculator
- Enter the job. Use the signed contract price and a realistic estimate of every cost to complete it.
- Enter the funding. Use the amount you need to start or carry the job, and the factor rate from your offer if you have one.
- Read the verdict. If funding eats most of the profit, look at a smaller amount, a longer-term product, or a line of credit.
What the numbers mean
Factor rate is how many fast-funding products are priced. Multiply it by the amount you receive to get the total payback. A $50,000 advance at a 1.30 factor rate means $65,000 paid back, a $15,000 cost.
Payments are often collected daily or weekly, either as a fixed amount or a percentage of your deposits. The estimates above spread the payback evenly over the term you choose. Your actual schedule may differ.
The rule that matters: only take funding when the job's profit clearly covers the cost, and your account can handle the payments while you wait to get paid. Our working capital guide explains this in depth, and our business funding guide compares lower-cost options.
Frequently asked questions
What is a typical factor rate for contractor funding?
It varies widely by product, your revenue, time in business, and credit. That's why this calculator lets you adjust it. Your actual offer will show the exact rate and total payback before you sign.
Is a factor rate the same as an interest rate?
No. A factor rate is applied once to the amount funded. Because short-term products are repaid quickly, the equivalent annual cost can be much higher than the factor rate suggests. In California, many offers of $500,000 or less include an estimated APR disclosure to help you compare.
What if the calculator says the job can't afford it?
Don't force it. Consider a smaller amount, a line of credit, invoice factoring, or renegotiating payment terms. We'll walk through the options with you.
Does using the calculator affect my credit?
No. The calculator runs entirely in your browser and doesn't collect any information.
This calculator provides estimates for illustration only and is not an offer, approval, or financial advice. Funding Expansion is a commercial funding broker, not a lender. Actual amounts, costs, and terms vary and are subject to qualification.