Merchant Cash Advance Calculator
See what a factor rate really costs. Enter an advance amount, factor rate, and term to get total payback, payment size, cost per dollar, and an annualized figure you can compare against any loan. Free, instant, no signup.
3-minute application · No credit impact to check options · Offers within hours
Factor Rate & Payback Calculator
Drag the sliders. Every output updates instantly, nothing is submitted or stored.
What is a merchant cash advance calculator?
A merchant cash advance calculator turns a factor rate quote into plain dollars. Enter the advance amount, factor rate, and estimated term, and it returns the total payback, the total cost of capital, the estimated payment each banking day or week, and an approximate annualized cost you can hold up against any other funding offer.
How do you calculate merchant cash advance payback?
Multiply the amount funded by the factor rate. There is no amortization table: the product of those two numbers is the entire payback. Subtract the original amount to get the cost of capital. Example: a $50,000 advance at a 1.25 factor is 50,000 × 1.25 = $62,500 payback, a $12,500 cost.
How do you calculate the payment on an MCA?
Divide the total payback by the number of payment periods in the term. This calculator uses roughly 21 banking days or 4.33 weeks per month. Eight months of daily payments is about 168 periods, so a $62,500 payback works out to roughly $372 each banking day.
How do you convert a factor rate to an APR?
You cannot produce a true APR, because an advance carries a fixed cost rather than interest accruing on a balance. For a rough comparison, divide the cost by the amount, then divide by the term in years: a 25% cost repaid over 8 months is about 37.5% annualized. Treat that as a comparison figure only, not an APR.
How is a factor rate different from an interest rate?
Interest accrues over time on the balance you still owe, so total cost depends on how long you carry the debt. A factor rate is a one-time multiplier: the payback is fixed the day you sign and never grows, but paying early usually does not reduce it. Compare products on total dollar cost.
For the full conversion walk-through, see the math behind factor rates, read how a merchant cash advance works, or compare every funding option side by side.
Worked Example: $50,000 at a 1.25 Factor
Here is the exact arithmetic the calculator runs, using the default inputs above (8-month term):
- Total payback: $50,000 × 1.25 = $62,500
- Cost of capital: $62,500 − $50,000 = $12,500
- Cost per dollar advanced: $12,500 ÷ $50,000 = $0.25, or 25 cents on the dollar
- Daily payment: 8 months × 21 banking days = 168 periods; $62,500 ÷ 168 = about $372.02 per banking day
- Weekly payment: 8 months × 4.33 weeks = 34.64 periods; $62,500 ÷ 34.64 = about $1,804.27 per week
- Approximate annualized cost: 25% ÷ (8 ÷ 12) = 37.5%, for comparison only, not an APR
For illustration only, not an offer or financial advice.
When Does an Advance Make Sense?
A factor-rate advance trades a fixed, known cost for speed and flexible qualifying. Here is where to go deeper.
Sales are strong, timing is tight
Revenue does the qualifying. Funding as soon as the same day, with remittances sized to your sales rhythm.
How an MCA works →Not sure an advance is the fit?
See how an MCA stacks up against a term loan and a line of credit on cost, speed, and structure.
MCA vs. term loan vs. LOC →Run the rest of your numbers
Working capital, payments, qualification ranges: every free tool lives in one place, no signup required.
All business calculators →Prefer a predictable schedule? Compare term loans and business lines of credit, or start with the full funding calculator. Wondering about timing? Read how fast same-day funding really is.
MCA Calculator FAQs
What is a factor rate on a merchant cash advance?
A factor rate is a one-time multiplier that sets the full cost of an advance up front. Multiply the amount funded by the factor rate to get the total payback: $50,000 at a 1.25 factor is $62,500, so the cost of capital is $12,500. That cost is fixed the day you sign and never compounds, which is why advances are compared on total dollars rather than a rate.
Can you convert a factor rate to an APR?
Not exactly. APR assumes interest accruing on a declining balance over a fixed schedule, while an advance has a fixed total cost and remittances that can flex with revenue. This calculator shows an approximate annualized cost of capital so you can compare options on similar footing, but it is not an APR. Our factor rate guide walks the conversion math step by step.
How are daily and weekly MCA payments estimated?
The calculator divides your total payback evenly across the term using roughly 21 banking days or 4.33 weeks per month, the same convention used across our business calculators. Real remittance schedules vary by agreement, and some are sized to a percentage of your sales rather than a flat amount, so your advisor will confirm the exact numbers before you sign anything.
Does paying off a merchant cash advance early save money?
Not automatically. Because the payback is a fixed multiple of the amount funded, finishing early usually does not shrink the total unless your agreement includes an early-payoff discount or prepayment provision. Ask for those terms in writing before you sign, and weigh the advance against a term loan, where paying early can reduce the interest you owe.
What factor rates does this calculator model?
It models factor rates from 1.10 to 1.49, the pricing structure used for revenue-based funding. Where your business lands depends on what underwriters read in your last 4 months of bank statements: monthly revenue, deposit consistency, time in business, and industry. Steadier deposits generally earn lower factors. See how a merchant cash advance works for the full picture.
Is this MCA calculator's estimate an offer?
No. It is an illustration built from the numbers you enter, not a quote or guarantee. Actual pricing depends on your revenue, deposit consistency, time in business, and industry, and every term is spelled out in your funding agreement. Apply online in under 3 minutes with no credit impact and receive a real, personalized offer within hours.
More questions? Visit the full FAQ or talk to a real advisor.
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Estimate your advance, fee, and reserve release.
Open the tool →Merchant Cash Advance
How MCA funding and factor rates work.
Read the guide →What Is a Factor Rate
How factor-rate math actually works.
Read the guide →MCA vs. Term Loan vs. Line of Credit
Match the funding type to your cash flow.
Read the guide →Want These Numbers in Your Inbox?
We’ll send you a copy of the estimate you just ran so you have it when you’re comparing offers. A real advisor may follow up once by email: no spam, no drip campaign.
The Only Number That Matters Is Your Real Offer
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