Merchant cash advance cost calculator
Convert a factor rate into total payback, cost of capital, daily payment and effective APR so you can compare an advance with a loan or line of credit.
Updated September 2026. Details vary by lender and change often; confirm terms with the provider.
Enter the advance amount, the factor rate on your quote, and how long the funder estimates payback will take. The calculator shows the true cost.
Effective APR accounts for the fact that you repay early and often, so the funder has your money for less time than the headline term suggests. That is why a 1.30 factor over 8 months is not "30%". Estimates only; your contract governs.
How to read the results
- Total payback is amount × factor rate. This number is fixed; paying faster does not reduce it unless the contract has an early-payoff discount.
- Cost of capital is what the money costs you in dollars.
- Effective APR is what that cost works out to per year, given how fast you repay. A 1.30 factor over 8 months is not “30%”; because the average balance outstanding is roughly half the advance, the effective rate is closer to 90%.
- Annualized simple cost is the naive number some brokers quote. It understates the real rate. We show it so you recognize it when you hear it.
Quick benchmarks
| Factor rate | 6-month payback | 12-month payback |
|---|---|---|
| 1.15 | ~55% APR | ~28% APR |
| 1.25 | ~90% APR | ~46% APR |
| 1.35 | ~125% APR | ~63% APR |
| 1.45 | ~160% APR | ~80% APR |
Approximate, daily payments. Your contract governs.
What to do with the number
If the effective APR is above what a line of credit or term loan would charge and you could wait one to two weeks, apply for those first. If the advance still makes sense because the return on the money is fast and certain, negotiate: get a second quote, ask for an early-payoff discount and confirm payments flex with revenue.