MCA Cost Calculator

See the real cost of a merchant cash advance — total payback, daily/weekly payment, and the true effective APR behind your factor rate. Then find out if you can refinance into something cheaper.

Total Payback
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Total Cost (Fees)
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Payment
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Est. Effective APR
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Effective APR is estimated from the cash-flow (IRR) of equal payments over the term. Actual terms vary; this is an educational estimate, not an offer of credit.

Paying too much?

If your effective APR came back high, you are exactly who we help. As a direct funder we can buy out your current advance and restructure it into lower payments.

See MCA Refinance →Apply — 2-4 hr decision

How merchant cash advance pricing works

Unlike a loan that uses an interest rate, a merchant cash advance uses a factor rate — a flat multiplier applied to the amount you receive. Multiply your advance by the factor rate and you get the total you repay. The difference is your cost. Because that whole fee is collected over a short window with frequent (often daily) payments, the effective APR is usually much higher than the factor rate looks. This tool calculates that APR honestly so you can compare an MCA against a working capital loan, a line of credit, or revenue-based financing.

When refinancing makes sense

Rule of thumb: if your effective APR is above ~50%, or you are juggling more than one advance, a buyout/refinance usually lowers your daily burden. Use the number above, then talk to us.

Frequently asked questions

How is the cost of a merchant cash advance calculated?

An MCA is priced with a factor rate, not an interest rate. You multiply the advance amount by the factor rate to get the total payback. For example, a $50,000 advance at a 1.40 factor rate means you repay $70,000 — a $20,000 cost. This calculator also estimates the effective APR so you can compare it to a term loan or line of credit.

What is a typical MCA factor rate?

Factor rates generally range from about 1.15 to 1.50. The exact rate depends on your monthly revenue, time in business, industry risk, and how many advances you already have. Lower factor rates go to stronger, higher-revenue businesses.

Why is my MCA APR so high?

Because the full fee is charged over a short repayment window (often 4-12 months) and paid back daily or weekly, the effective APR is usually far higher than the factor rate suggests — frequently 40% to over 100%. If your estimated APR here is high, you may be a strong candidate to refinance or buy out the advance into cheaper terms.

Can Merchant Fund Express lower my MCA cost?

Often, yes. As a direct funder we can buy out a high-cost advance and restructure it into lower payments or a longer term. Run your numbers above, then apply — we give honest 2-4 hour decisions for businesses doing $15,000+/month in revenue with a 500+ FICO.