Cash Advance Cost Calculator

Find out the true cost of a cash advance before you commit. Compare total repayment, effective APR, and daily cost instantly.

Enter Your Advance Details

Advance Amount ($)

The total amount of cash you are receiving upfront.

Factor Rate

Typical range: 1.10 to 1.50. This multiplier determines your total repayment. A factor rate of 1.35 means you repay $1.35 for every $1 borrowed.

Repayment Term (days)

Most merchant cash advances are repaid in 60 to 240 days. Enter the number of calendar days for your repayment window.

Business Days per Week

Used to estimate daily payment amounts. Enter 5 for Monday through Friday, or 6 to 7 if you operate on weekends.

Your Cash Advance Breakdown

Total Repayment

Total Cost (Fees)

Effective APR

Daily Cost (calendar days)

Daily Payment (business days)

Cost as % of Advance

Cash Advance vs. Traditional Loan (Illustrative Comparison)

Metric	Cash Advance	Traditional Loan (10% APR)
Total Repayment
Total Interest / Fees
Effective APR		10.00%

The traditional loan comparison is an estimate only, assuming simple interest at 10% APR over the same term. This is not financial advice.

Next Steps

Compare this factor rate with at least two other lenders before signing.
Ask your lender for the equivalent APR in writing so you can make an apples-to-apples comparison.
If your effective APR exceeds 50%, explore SBA loans, business lines of credit, or invoice factoring.
Ensure your projected daily revenue can cover the estimated daily payment without straining operations.

How It Works

Total Repayment: Multiply the advance amount by the factor rate. For example, $10,000 at a factor rate of 1.35 yields a total repayment of $13,500.

Total Cost (Fees): Subtract the original advance from the total repayment. This is the flat fee you pay for access to funds.

Effective APR: Because factor rates are not the same as interest rates, this calculator converts the cost to an annualized percentage rate using the formula: APR = (Total Cost / Advance Amount) / (Repayment Days / 365) x 100. This lets you compare the advance to traditional loans on an equal footing.

Daily Cost: The total repayment is divided by the number of calendar days (or business days) to show how much you are effectively paying each day until the advance is repaid.

Frequently Asked Questions

What is a factor rate and how is it different from an interest rate?

A factor rate is a simple decimal multiplier applied to the amount you borrow. Unlike an interest rate, it does not compound over time and does not decrease as you pay down the balance. This means paying off a cash advance early does not reduce the total fees you owe, which is a key distinction from traditional loans.

Why is the effective APR on a cash advance so high?

Cash advances are typically repaid over a very short term (often 90 to 180 days). When a flat fee is annualized over such a short window, the resulting APR appears very high compared to a multi-year bank loan. The absolute dollar cost may be manageable, but the annualized rate makes short-term borrowing look expensive when expressed as APR.

Can I use this calculator for a personal cash advance or payday loan?

This tool is designed primarily for merchant cash advances (MCAs) used by businesses. However, the same math applies to any factor-rate-based product. If you know your total repayment amount and repayment term, you can enter those values to estimate the effective APR for a personal advance as well. Always verify the exact terms with your lender.

Browse All Free SEO Tools | Results are estimates only and do not constitute financial or legal advice.