Enter the numbers from your merchant cash advance agreement to see your total payback, your daily or weekly payment, what the advance really costs per dollar, and an estimated APR you can compare against any other financing.
You'll find everything you need in your agreement: the purchase price or advance amount, the factor rate (or the total "purchased amount" divided by the advance), the debit amount and how often it's taken, and any fees deducted before the money hit your account. If you know your payment, enter it and leave the term blank; the calculator works out how many payments it takes to reach the payback amount.
A factor rate is charged once, no matter how fast you repay. The same 1.35 factor on a $50,000 advance is roughly 188% APR over 4 months, 126% over 6 months and 63% over 12 months. Our guide to converting a factor rate to APR walks through the full table and the formula.
Run the calculator for each position. Stacked advances often carry very different APRs, and the most expensive one isn't always the newest. See how MCA stacking works and how to evaluate your MCA stack, or check whether your state requires funders to disclose an APR on our MCA laws by state page.
Enter your total MCA balance and current daily payment for a rough estimate under a typical restructuring scenario.
How do I calculate the APR on a merchant cash advance?
Work out the number of payments (payback amount divided by the payment), then find the annual rate at which those payments exactly repay the cash you actually received after fees. This calculator does that for you using the same method as an APR on an amortizing loan.
Is a 1.35 factor rate the same as 35% interest?
No. A 1.35 factor means you repay 1.35 times the advance no matter how long it takes. Over a 6-month daily-debit term, that works out to roughly 126% APR.
Why does a shorter term raise the APR?
The fee is fixed, so repaying it faster means paying more per year for the money. Daily debits also start right away, so on average you only have about half the advance over its life.
Do fees taken out of the advance change the cost?
Yes. Origination or underwriting fees deducted at funding reduce the cash you receive while the payback stays the same, which raises the effective APR.
Is this calculator's result the same as a lender's disclosure?
It's an estimate. States like California and New York require funders to disclose an estimated APR before you sign, using their own methods, so small differences are normal.
This calculator provides estimates for general informational purposes only and does not constitute legal, tax, or financial advice. Renaissance Capital Advisors provides business consulting and referral services only and is not a lender, broker or law firm.
A free, confidential 30-minute consultation. We will annualize every position and show you where the cash is actually going.
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