Free calculator
Turn a merchant cash advance offer into the yearly rate you'd see on a loan, so you can compare offers on equal terms. Built by a commercial underwriter.
The common shortcut ((factor − 1) ÷ months × 12) assumes you owe the full amount the whole time. You start paying the next business day, so you have less of the money for most of the term and the real yearly cost is higher.
Estimate. MCA payments are usually a share of your sales, so the actual payback time can be shorter or longer, which changes the APR.
14 questions, 2–3 minutes, no credit pull.
The calculator finds the yearly rate at which your payments add up to exactly the cash you received, the same way a loan's APR is worked out. It counts every payment on the day it's made, so it reflects that you start paying right away and have less of the money as the term goes on.
Daily payments assume about 252 business days a year, the days a bank debit can run. Fees taken out of the funding reduce the cash you actually get, so they raise the APR even though the payback stays the same.
For more on how factor rates are priced and what moves them, read factor rate vs. interest rate.
A factor rate is the multiplier on the amount you receive. $50,000 at a 1.35 factor means you pay back $67,500. The $17,500 difference is the cost, and on most merchant cash advances it stays the same no matter how quickly you pay it back.
Because the payback is short and starts right away. A 1.35 factor looks like 35%, but you pay it over months, not years, and you start paying the next business day. Spread over a year on the money you actually have, it often comes out well over 50%.
Usually not. The payback amount is fixed, so paying faster means the same cost over less time, which raises the APR. Some providers offer an early payoff discount. Ask for it in writing before you sign.
Ask the provider for the estimated term. If your payment is a percentage of sales, divide the total payback by your expected daily payment (holdback percentage × average daily sales) to get the number of business days.
Federal Truth in Lending rules cover consumer credit, not business financing. Some states, including California and New York, require providers to disclose an estimated APR on many commercial financing offers. Wherever you are, you can ask for it.
This calculator gives an estimate for informational purposes only and does not constitute financial advice. Actual cost depends on each provider's terms and how quickly the advance is repaid. Funding approval depends on individual lender criteria and is not guaranteed.