Free tool · factor rate ≠ APR

Merchant cash advance calculator

This calculator estimates the total payback on a merchant cash advance from the advance amount and the factor rate, and helps you see the real cost behind the convenience. MCAs are fast and easy to qualify for, but they are often one of the most expensive ways to fund a business.

Advance amount

Factor rate: 1.30

Estimated payback term: 6 months

Total payback$32,500

It costs you$7,500

You receive: $25,000
You repay (advance × factor 1.30): $32,500
Total cost of capital (not annualised): $7,500 (30% of the advance)
Estimated APR — nominal (factor ÷ term): ≈ 60%
Estimated APR — effective (level weekly payments): ≈ 106.6%

A factor rate is not an APR. The 30% above is the total cost of the capital over the whole advance — it is not annualised. Because MCAs are usually repaid daily or weekly over a few months, the annualised APR is far higher: the figures above are illustrative and depend on your payback speed (a 6-month term here), and the effective APR commonly lands in the cited 40%–350%+ range. This estimate ignores any extra fees. It is informational only, not advice — compare the true cost against a term loan or SBA loan first.

The result is an estimate for understanding, not a financing offer or financial advice. Real terms, fees, and holdback amounts come from the provider, and we are not a lender.

Factor rate vs APR

An MCA is priced with a factor rate, typically a number like a small multiplier, not an interest rate. You multiply the advance by the factor rate to get the total you must repay, fixed from day one.

That is fundamentally different from an APR, which expresses cost as an annual percentage and falls if you repay faster. With a factor rate, paying early usually does not save you money, because the payback is fixed.

This is why an MCA can look cheap as a flat percentage but carry a very high effective APR once you account for how quickly it is repaid.

How the estimate works

We take your advance amount and multiply it by the factor rate to estimate total payback. The difference between that and the advance is the cost of the money.

We then show that cost in plain terms so you can compare it against other financing. Keep in mind real MCAs may add origination or administrative fees we cannot see, so your actual cost could be higher.

Daily or weekly holdbacks also affect cash flow. A large slice of your receipts going to repayment can squeeze your operating budget, even if the headline number looks manageable.

Before you accept an MCA

Because MCAs are expensive, it is worth checking whether you qualify for a working capital loan, a line of credit, or an SBA loan first. Those typically cost far less if you can wait for funding.

If speed truly matters, use this estimate to compare offers and to understand the total dollar cost, not just the factor rate.

This tool is informational only. Read the full agreement, ask about all fees, and consider speaking with an accountant before committing to financing through future sales.

Frequently asked questions

Is the total payback figure exact?: No. It is an estimate based on the advance and factor rate you enter. Real agreements may include additional fees and holdback terms that change your actual cost. Always rely on the provider's written terms.
Does repaying an MCA early save me money?: Usually not. Because the payback is set by a fixed factor rate rather than accruing interest, paying early typically does not reduce the total. Confirm the specific terms with your provider.
Is an MCA a loan?: Technically no. An MCA is the sale of a portion of your future sales at a discount, which is why it is priced with a factor rate instead of an APR and is regulated differently from a traditional loan.