MCA cost calculator
A factor rate hides what an advance really costs, because it ignores how fast you repay. Enter your offer and see the estimated APR, the total cost, and how long it runs.
Your offer
Enter the numbers from the offer in front of you. Nothing is sent anywhere; the math runs in your browser.
Not sure of your payment? If your advance takes a percentage of sales, multiply your average monthly deposits by that holdback percentage and choose Monthly.
Estimate only. Assumes a level payment on a regular schedule. Real agreements vary, and reconciled advances move with your sales. Capital Match Now is a free matching service, not a lender, and this is not financial or legal advice. Always read the full agreement.
Why a factor rate is not a rate
A factor rate looks like a small number. A 1.3 on 50,000 dollars means you repay 65,000 dollars, so 15,000 dollars for the money. Owners read that as "fifteen thousand, about thirty percent" and move on.
The problem is that a factor rate says nothing about time, and time is most of the cost. Repaying that 65,000 dollars over four months and repaying it over eighteen months are completely different transactions, even though the factor rate and the dollar cost are identical. In the first case you are paying 15,000 dollars to use the money briefly. In the second you are paying the same 15,000 dollars to use it more than four times as long.
APR exists to solve exactly this. It folds the payment schedule into a single annual figure, which is the only way to line an advance up against a term loan, a line of credit, or a competing advance and see which is actually cheaper. Because advances repay quickly, usually every business day, the APR is often several times what the factor rate suggests. That is not a trick in the calculator; it is what the money costs.
None of that makes an advance a bad decision. Speed and access are worth real money when a job needs materials on Monday or a broken oven is costing you covers every night. But you should make that call knowing the number, not instead of knowing it.
How to compare two offers properly
Run each offer through the calculator and write down three figures: the estimated APR, the total dollar cost, and the payment. Then judge them together.
The APR tells you which offer is cheaper for the money. The total dollar cost tells you what leaves your business overall. The payment tells you whether you can survive it, which is the one that actually sinks businesses. A cheaper APR with a daily payment your slow season cannot cover is worse than a slightly costlier advance you can comfortably service.
Two things to check in the paperwork that no calculator can show you: whether the agreement reconciles payments when sales fall, and what happens if you repay early. Many advances carry the full factor regardless, so paying early saves you nothing and simply raises the effective APR.
Link to this calculator
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Frequently asked questions
What is a factor rate?
A factor rate is a multiplier applied to the amount advanced. If you receive 50,000 dollars at a 1.3 factor rate, you repay 65,000 dollars in total. Unlike an interest rate, it does not change with how long you take to repay, which is exactly why it can hide the true cost.
Why is the APR so much higher than the factor rate?
Because a factor rate ignores time. Repaying a 1.3 factor over four months is a far more expensive use of money than repaying the same 1.3 over eighteen months, even though the dollar cost is identical. APR expresses the cost as an annual rate, which is the only way to compare an advance against a loan, a line of credit, or another advance on equal terms.
Is this calculator exact?
It is an estimate based on the numbers you enter. It assumes a level payment on a regular schedule. Real advances vary: daily debits skip weekends and holidays, some agreements reconcile payments against actual sales, and fees may be deducted from the amount funded. Always read the agreement and confirm the figures with the funder.
What if I only know my holdback percentage?
Some advances take a percentage of daily card sales rather than a fixed payment. To use this calculator, multiply your average monthly deposits by the holdback percentage to estimate a monthly payment, then choose Monthly as the frequency. Your real term will move up and down with your sales.
What is considered a high cost for an advance?
There is no single threshold, and we do not publish rate benchmarks because real pricing depends on your business. What matters is comparing offers on the same basis. Run each offer through this calculator, compare the estimated APRs and the total dollar cost, and factor in whether the daily or weekly payment is one your cash flow can actually absorb.
Are fees included?
Not automatically. Origination, underwriting, or processing fees are often deducted from the amount you receive. If you are quoted 50,000 dollars but 2,000 dollars in fees comes off the top, enter 48,000 dollars as the amount you actually receive to see a truer cost.