MCA Cost Calculator
Merchant cash advances are quoted in factor rates, not interest rates — which makes them hard to compare to a normal loan. Enter your numbers below to see the true dollar cost, estimated APR, and what remittance looks like per payment.
The funding amount you would receive.
Usually between 1.1 and 1.5. Ask your funder.
How long until the advance is fully remitted.
How often payments are collected.
Your estimated cost of capital
Total you remit
$65,000
on a $50,000 advance
Cost of the advance
$15,000
factor rate 1.30
Per business day
$333
over about 195 business days
Estimated APR
40%
for comparison only
This calculator is for general educational purposes only and produces estimates, not an offer of funding or a quote. Merchant cash advance remittance is based on a percentage of revenue and varies with actual sales, so real term length and the effective APR will differ from any fixed estimate. APR is shown only to help compare cost; a merchant cash advance is not a loan and is not quoted in APR. Actual terms depend on underwriting. Not all applicants qualify.
How to read these numbers
A merchant cash advance is the purchase of your future revenue at a discount. Instead of an interest rate, it uses a factor rate — you multiply the advance amount by the factor rate to get the total amount to be remitted.
Factor rate vs. interest rate
A factor rate of 1.30 on a $50,000 advance means $65,000 is remitted in total — a $15,000 cost. Unlike interest, the factor cost does not shrink as you pay it down, and it does not reduce if you remit faster. That fixed nature is the single most important thing to understand before accepting an advance.
Why the estimated APR matters
The same dollar cost is a very different deal over 4 months versus 12 months. Converting to an estimated APR puts the cost on the same scale as other financing so you can compare honestly. Because remittance flexes with revenue, the real APR moves — a shorter actual term makes the effective APR higher, not lower.
Questions worth asking any funder
Ask for the factor rate, the total remittance amount, the estimated term, the remittance frequency and amount, whether there are origination or other fees, and what happens if revenue slows. An honest funder will answer all of these clearly.
Want to talk through your numbers?
Y Millennial Funding is a direct funder. If you would like to understand your options — or review an offer you have already received — reach out and we will walk through it honestly.