A factor rate looks small, but the real cost depends on how fast you repay. Use this calculator to turn the numbers in an offer into total payback, the daily payment, and an estimated APR. Then compare offers on the same basis.
Estimates only. The numbers come from what you enter and assume equal payments for the full term. Your contract, fees, and payment schedule may differ. These figures are not an offer or a quote, and they are not financial advice.
How the Calculator Works
Total payback is the advance times the factor rate. A $30,000 advance at 1.30 means $39,000 back. The calculator then divides that payback into equal payments over your term to show the daily or weekly amount. For the estimated APR, it finds the yearly rate that makes the stream of payments equal the net funds you received. That is why it asks for fees: an origination fee taken from the advance raises the real cost.
Why the Same Factor Rate Can Cost Very Different Amounts
Try it. Enter a 1.30 factor rate and a 12-month term, then change the term to 4 months. The total payback stays the same, but the estimated APR jumps, because you hold the money for less time. That is the main reason you cannot compare offers by factor rate alone. Read more in our factor rate vs APR guide.
What to Check Next
- Whether payments are fixed or tied to a share of sales
- Any fees taken from the advance, and the net amount you actually get
- Whether your contract limits other financing, see MCA stacking explained
- How an MCA compares with a loan, see MCA vs business loan
Want to See Real Offers?
Once you know what the numbers mean, start your application at Source Borrowing to see what is available for your business. Applying does not commit you to anything.
Frequently Asked Questions
How do I calculate the total payback on a merchant cash advance?
Multiply the advance by the factor rate. A $30,000 advance at a 1.30 factor rate means $39,000 total payback.
How is the estimated APR on this calculator figured?
It finds the yearly rate that makes the equal payments you enter match the net funds you receive. It is an estimate, because real contracts can have uneven payments or sales-based repayment.
Why does a shorter term raise the APR?
The cost in dollars stays the same, but you have the money for less time, so the annual rate is higher.
Does this calculator include fees?
Yes, enter any fees that come out of the advance. They lower your net funds and raise your cost and APR.
Is this calculator a quote or an offer?
No. It is an estimate based on the numbers you enter. Your contract controls the actual terms.