Axiant Partners

Merchant Cash Advance Calculator: See the Real APR

A factor rate hides the true cost of a merchant cash advance. Enter your advance, factor rate, and term to see the real APR, total fees, your daily or weekly payment — and how much a lower-cost option could save you.

Usually 1.1–1.5. Your total payback = advance × factor.
How long until it's paid off.
Typical term loan / line of credit for comparison.
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Estimated true APR
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Total cost (fees)
Total payback—
Cost per $1 borrowed—
Estimated payment—
Number of payments—

Paying too much for an MCA?

We match businesses with lenders that may offer lower-cost term loans and lines of credit — and help you refinance or consolidate an expensive advance.

Get Matched With Lower-Cost Financing →

How the MCA calculator works

A merchant cash advance doesn't quote an interest rate — it quotes a factor rate. That makes the real cost hard to see. This calculator does the math for you:

  • Total payback = advance × factor rate. A $50,000 advance at a 1.40 factor means you repay $70,000.
  • Total cost = payback − advance. In that example, $20,000.
  • True APR is calculated from the actual repayment schedule (your daily or weekly payments over the term), not a simplified estimate — so it reflects what the advance really costs on an annual basis.

Why factor rates hide the real cost

Because MCAs are repaid quickly — often in 4 to 12 months — the same dollar cost is squeezed into a short window, which pushes the annual rate far higher than it looks. A 1.40 factor rate sounds like "40%," but repaid over 9 months it can work out to an APR well above 70–90%. Spread the identical fee over three years and the APR would be a fraction of that. Term matters as much as the factor rate.

MCA vs. a term loan or line of credit

For most businesses that qualify, a term loan or business line of credit costs far less than an MCA for the same amount of capital. Use the comparison field above to see the difference in real dollars. If you're stuck in an expensive advance, refinancing or consolidating into lower-cost financing can free up daily cash flow.

This calculator provides estimates for educational purposes only and is not a loan offer or financial advice. Actual MCA terms, holdback percentages, and payoff timing vary by provider and your business's revenue. APR is an estimate derived from the inputs you provide.