Enter the amount, the factor rate and the expected term. The calculator shows what you repay in total, what each daily or weekly payment comes to, what the money costs in dollars, and an estimated APR so you can compare the offer with a loan.
How the numbers work
Total payback is the advance multiplied by the factor rate. On $50,000 at 1.30 that is $65,000.
Cost of capital is the payback minus the money you actually receive. Upfront fees are deducted before funding, so they raise the cost without raising the payback.
The payment is the payback divided by the number of payments. Daily schedules use about 21 business days a month; weekly schedules use 52 weeks a year.
Estimated APR treats the schedule like a loan and finds the annual rate that matches it. It is the fairest way to put a factor-rate offer next to a bank loan or a line of credit.
Why the same factor rate can cost very different amounts
A factor rate is charged once, up front, whatever the term. That makes the term the lever that matters most. A 1.30 factor repaid over twelve months is a far cheaper use of money than the same 1.30 repaid over four, even though the dollar cost is identical. Try both in the calculator above and compare the estimated APR.
This is also why an early payoff on a factor-rate product rarely saves what people expect: the cost was fixed when the advance was priced. Ask before you sign whether any early-payoff discount applies.
What decides the factor rate you are offered
Pricing turns on the same few things every time: average monthly revenue, time in business, how steady the deposits are, the number of negative balance days, and any funding already being repaid. Four months of complete bank statements answer almost all of it, which is why they matter more than a credit score here.
Common questions
How do you calculate the payback on a merchant cash advance?
Multiply the advance amount by the factor rate. A $50,000 advance at a 1.30 factor rate has a total payback of $65,000, so the cost of capital is $15,000 before any fees.
Is a factor rate the same as an interest rate?
No. A factor rate is a fixed multiplier applied once to the amount advanced. It does not compound and it does not change with time, which is why the same factor rate can mean very different annualised costs depending on how quickly the advance is repaid.
Why does the calculator show an estimated APR?
An annualised figure is the only way to compare a factor-rate product with a term loan or line of credit on equal footing. It is an estimate based on the term and payment schedule you enter; the real figure depends on how quickly your sales actually repay the advance.
Read next: What is a factor rate? · The cost of business funding · Merchant cash advance
Want real numbers instead of estimates? Checking what you qualify for takes about 60 seconds, uses a soft credit pull only, and costs nothing. Start an application or request a callback if you would rather talk it through.