Free Tool
MCA True Cost Calculator
Merchant cash advance lenders quote a factor rate, not an APR — making the real cost hard to see. This calculator converts your MCA terms into an effective APR so you can compare it against other financing options.
MCA Terms
Cash amount you receive upfront
Typical range: 1.1 (cheap) to 1.5 (expensive)
Your average daily card/bank revenue
% of daily sales withheld for repayment
Results
Total Repayment
$67,500
Factor rate × advance
Total Cost
$17,500
35.0% of advance
Daily Payment
$450
15.0% of $3,000/day
Effective APR
85.2%
High Cost
Estimated Repayment Period
150 business days
~7 months at $450/day
You repay
$17,500 extra
above the $50,000 received
The APR above tells the full story. Explore lower-cost alternatives.
Merchant cash advances are expensive. The effective APR is often 40–150%, far above SBA or bank loan rates. If your business qualifies for traditional financing, the cost difference is significant. These resources help you compare options.
Compare Business Loan Options — Lendio
Includes SBA, lines of credit, term loans
SBA Loan Rates Today — SBA.gov
Official current rates
Invoice Factoring Calculator
Often cheaper than MCA
Links marked "Sponsored links" may earn us a referral fee at no cost to you. We only link to established lenders and official government resources. This is not a recommendation to use any specific lender. See our disclosures.
Understanding MCA Factor Rates vs APR
A factor rate of 1.35 means you repay $1.35 for every $1.00 borrowed. Unlike an interest rate, it does not account for how quickly you repay — which is why converting to APR reveals the true cost.
A 1.35 factor rate on a 6-month repayment term equals roughly a 70% effective APR. The same factor rate paid off in 3 months equals a 140% APR. Speed of repayment dramatically changes the actual cost.
MCAs are best for businesses with no other options, predictable daily card sales, and a short-term cash need (equipment down, seasonal gap). They are expensive, fast, and require no collateral or minimum credit score.
Estimates based on inputs provided. Actual MCA costs vary by provider and contract terms. Not financial advice.