Total Cost of Capital Calculator
See the true all-in cost of any business loan or advance. Enter your rate, fees, and terms to get the effective APR, total cost of capital, and cost per dollar borrowed. Works with both APR and factor rate pricing.
See the true all-in cost of any business financing option. Enter your loan details and fees to get the effective APR, total cost, and cost per dollar borrowed.
Many lenders quote a rate but add fees that significantly increase the actual cost. This calculator shows you the full picture.
The total amount you plan to borrow.
Fees & Charges
Include all upfront costs charged by the lender.
Low Cost Financing
This financing option has a competitive all-in cost. Fees add minimal overhead to the stated rate.
13.4%
Effective APR
Total Repayment
$239,143
principal + interest
Total Fees
$4,000
all upfront charges
Total Cost of Capital
$43,143
interest + fees
Cost Per Dollar
$0.22
for every $1 borrowed
Stated Rate vs Effective APR
Fees add 1.4 percentage points to the effective rate. You receive $196,000 but pay interest on $200,000.
Monthly Payment
$6,643
36 payments total
Net Proceeds
$196,000
what you actually receive
You Pay Back
$239,143
+ $4,000 in upfront fees
Cost Breakdown
▶Full Cost Breakdown
| Item | Amount |
|---|---|
| Loan Amount | $200,000 |
| Origination Fee (2%) | -$4,000 |
| Net Proceeds (what you receive) | $196,000 |
| Total Interest Paid | $39,143 |
| Total Fees Paid | $4,000 |
| Total Cost of Capital | $43,143 |
At 13.4% effective APR, this is a competitive financing option.
Compare offers from multiple lenders to find the lowest all-in cost. No impact to your credit score.
Why the Quoted Rate Is Not the Full Story
A lender quotes you 10% on a $200,000 loan. Sounds straightforward. But then there is a 2% origination fee ($4,000), a $1,500 closing cost, and a $500 documentation fee. Those $6,000 in fees come off the top. You receive $194,000, but you pay interest on the full $200,000. The effective APR is closer to 11.5%, and your total cost of capital is $6,000 higher than the interest alone would suggest. This calculator runs that math for you so you can compare offers on a level playing field.
What Is Effective APR?
Effective APR is the annual rate that accounts for all costs of borrowing, not just the interest rate. It factors in origination fees, closing costs, and any other charges that reduce the amount you actually receive. Two loans with the same quoted rate can have very different effective APRs depending on their fee structures. The Truth in Lending Act (TILA) requires lenders to disclose APR for consumer loans, but business loans are not always held to the same standard. Use our factor rate to APR converter if you need to convert a factor rate to an annual percentage rate.
Common Fees That Increase Your Cost
Origination fees are the most common, typically ranging from 1% to 5% of the loan amount. Closing costs cover appraisals, title searches, and legal work, and can run $500 to $5,000 or more on larger loans. Documentation and packaging fees are charged by some lenders for processing your application. UCC filing fees, wire transfer fees, and technology fees are smaller line items that add up. When comparing term loans or lines of credit, always ask for the full fee schedule before committing.
Comparing Offers the Right Way
The best way to compare financing options is to look at the total cost of capital and the effective APR for each offer. A loan with a lower stated rate but higher fees can cost more overall than one with a slightly higher rate and no fees. Cost per dollar borrowed is another useful metric: if Offer A costs $0.18 per dollar and Offer B costs $0.22 per dollar, Offer A is cheaper regardless of how the rates and fees are structured. Use our loan comparison tool to put two or three offers side by side, or talk to a funding specialist who can help you find the lowest all-in cost for your situation, with no impact to your credit score.
How It Works
Enter Loan Details
Input your loan amount, interest rate or factor rate, term length, and payment frequency.
Add All Fees
Include origination fees, closing costs, documentation fees, and any other charges the lender quotes.
See the True Cost
Get your effective APR, total cost of capital, cost per dollar borrowed, and a full breakdown of every charge.
What You Get
Effective APR
The true annual rate once all fees are factored in, not just the quoted interest rate.
Total Cost of Capital
Interest plus every fee combined into one number so you can see the full price of borrowing.
Cost Per Dollar Borrowed
How much you pay in total costs for every dollar you receive. A quick way to compare offers.
Stated vs Effective Rate
A visual comparison showing how much fees inflate the rate beyond what the lender quotes.
Fee Breakdown Chart
See exactly where your money goes with a proportional breakdown of interest versus each fee.
Net Proceeds Calculation
The actual amount you receive after upfront fees are deducted from the loan amount.
Total Cost of Capital Calculator — Frequently Asked Questions
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