Merchant Cash Advance Calculator

Use this calculator to estimate the cost of a merchant cash advance from leading UK providers such as 365 Finance, Capify, Liberis, MCL Finance, Momenta Finance, Nucleus Commercial Finance, SAPI, Square, SumUp, Swiftfund and YouLend.

How does the MCA calculator work?

The calculator estimates your total repayment and expected daily or monthly costs based on your borrowing amount, factor rate, and projected monthly card sales. It helps you understand how repayments may be structured in relation to your business revenue and overall funding cost.

How are MCA repayments calculated?

Repayments are calculated by applying the factor rate to the original loan amount to determine the total repayable balance. This total is then distributed as a percentage of your monthly or daily card sales, meaning repayments adjust in line with your business’s revenue levels.

Why do merchant cash advance lenders use factor rates instead of interest rates?

Merchant cash advance lenders use factor rates because they provide a simple, fixed repayment amount based on the advance, rather than fluctuating interest over time. This suits the flexible nature of repayments, which are often tied to daily card sales, and allows lenders to price risk more easily for businesses with variable revenue or lower credit scores.

Is a factor rate the same as APR?

No, a factor rate is not the same as APR. A factor rate shows the total repayment as a multiple of the borrowed amount, while APR represents the annual cost of borrowing, including fees and time. Because factor rates don’t account for the repayment period, they can appear lower but often translate into a higher effective APR.

Our calculators

Merchant Cash Advance Calculator

Factor Rate to Interest Rate Calculator