Business financing · Cost of capital
Merchant cash advance calculator.
Enter the advance, the factor rate, any fees and the number of payments. See what you repay, what it costs per dollar and an estimated APR to compare against a loan or line of credit.
A merchant cash advance quotes a factor rate, not an interest rate: payback = advance × factor. Because you repay it in a few months, the same fee equals a much higher annual rate. This page solves the rate that makes your payments equal the cash you actually received.
Your advance
Your estimate
How the cost and APR are worked out
Payback = advance × factor rate. Cash received = advance − fees. Cost = payback − cash received. The payment is payback divided by the number of payments. The estimated APR solves the periodic rate r that satisfies cash received = payment × [1 − (1 + r)−n] ÷ r, then multiplies r by 252 (daily, business days) or 52 (weekly). The effective annual rate compounds r over the same count.
Worked example
A $50,000 advance at 1.30 with $1,500 in fees means you receive $48,500 and repay $65,000 over 126 daily payments of $515.87. The cost is $16,500, or 34.02% of the cash received. Because it is repaid in about half a year, the estimated APR is 122.68%. The form is preloaded with this example.
What this page does not do
- Many advances repay a fixed percentage of daily card sales, so the payment changes with revenue. This page assumes equal payments, so treat the result as an estimate.
- It treats the number of payments you enter as fixed. If you repay early and the contract gives a discount, the real cost and APR differ.
- The APR is a comparison estimate. It is not the disclosure a state law may require, and it is not a promise of what any provider charges.
There is no yearly rate table here. The inputs are the terms in your offer; the calculation is arithmetic.
Frequently asked questions
What is a factor rate?
A multiplier applied to the advance to give the total you repay. A 1.30 factor on $50,000 means $65,000 is repaid, regardless of how fast you repay it.
Why is the APR so much higher than the factor rate suggests?
The cost is charged over a short repayment, so annualising it multiplies it, and repaying in installments means you hold less than the full advance for most of the term.
Does repaying early lower the cost?
Only if your contract gives a discount or rebate. A pure factor-rate contract usually does not, which makes early repayment raise the effective APR.
Can I compare it with a bank loan?
Yes. Use the estimated APR next to the APR of a loan or line of credit, bearing in mind the payment pattern and repayment length differ.
Estimate only
This page is educational and is not financial or legal advice. It is a cost comparison, not a lender disclosure; read the funding agreement and consider independent advice before signing. Calculations run in your browser; nothing is sent anywhere.