Convert a factor rate into a total payback amount, real payment schedule, and annualized cost before you sign a merchant cash advance offer. No credit check, no sign up, results in seconds.
Enter the figures from your funding offer to see the real cost
Merchant cash advances price differently than a traditional loan. Here's what each number in your offer actually means.
A factor rate of 1.32 on a $100,000 advance means you repay $132,000 total, fixed at signing. It doesn't compound and it doesn't shrink if you pay early, unlike a loan's interest rate.
Your total funding cost combines the factor markup and the origination fee into one number. It's what you actually pay for the capital, calculated against what you actually received.
Because MCA terms are short, a modest-looking factor rate can translate into a high annualized cost. The APR figure lets you compare an MCA offer against a traditional loan on equal footing.
Six figures, one clear picture of what a merchant cash advance actually costs. Here's what each one means.
Your funding amount multiplied by the factor rate. This is the fixed total you owe, set at signing and unaffected by how fast you repay.
The dollar amount withheld from your funding at closing, based on the fee percentage in your offer. Not every provider charges this.
The full price of the capital: your factor markup plus the origination fee combined, measured against what you actually received.
The actual cash that lands in your account after any origination fee is deducted. Often lower than the headline "funding amount."
Your total payback divided across the number of payments you selected, on the cadence your provider actually collects on.
Your total funding cost, annualized against the real term length. This is the number that lets you compare an MCA against a loan's stated rate.
A merchant cash advance solves a specific problem well and a lot of other problems poorly. Here's how to tell which one you have.
Not sure which financing type fits your situation? Compare vetted MCA and working capital lenders side by side.
See Top Rated Lenders →A factor rate is a fixed decimal multiplier, typically between 1.05 and 1.60, applied once to your funding amount to calculate your total payback. A $100,000 advance at a 1.32 factor rate means you owe $132,000 total, regardless of how quickly you repay it.
We take your total funding cost (factor markup plus origination fee) as a percentage of your net funding, then annualize it based on your total term in days. This mirrors the type of annualized cost disclosure many states now require commercial financing providers to show, letting you compare an MCA against a traditional loan's APR.
The same number of payments spans a very different total term depending on whether they're collected daily, weekly, or monthly. Since APR is annualized against total term length, switching structures changes both your per-payment amount and your estimated APR even if the number of payments stays the same.
No. This tool runs entirely in your browser and does not submit any information to a lender or perform a credit inquiry. Your credit score is only affected once you submit a formal application directly with a funding provider.
Because the total payback is fixed by the factor rate rather than accruing daily like interest, paying early typically does not reduce the total amount owed unless your specific provider offers an early payoff discount. Ask your provider directly whether early payoff savings apply to your agreement.
Calculator disclaimer: This tool is for informational and educational purposes only. Results, including the estimated APR, are estimates based on the figures you enter and do not constitute a funding offer, guarantee of approval, or commitment to lend. Actual factor rates, fees, and remittance schedules are determined solely by the funding provider. Best MCA Loans is not a lender and makes no credit decisions. Always review the complete terms of any offer directly with the provider before signing.