VALCOR

MCA True-Cost Calculator

MCA calculator icon
Free MCA calculator · Merchant cash advance

What is your cash advance really costing you?

This free MCA calculator turns the factor rate in your merchant cash advance agreement into an estimated annual percentage rate (APR), the same yardstick lenders use for loans. Enter your terms below to see the true cost.

Have your agreement and a recent bank statement handy. Most cash advance contracts call the deal a “purchase of future receivables,” not a loan, so the terms go by different names. The key numbers are usually in a summary box on the first page or in a schedule at the end. Open “Where to find this” under any field for the names to look for.

$

Enter the amount you were advanced.

Where to find this

Look for Purchase Price, Funded Amount or Advance Amount, usually in the summary box on page one.

Don’t confuse it with the Purchased Amount. That’s the total you pay back, not what you received.

Usually between 1.10 and 1.50. Total payback = advance × factor rate.

Enter a factor rate between 1.01 and 3.00.

Where to find this

Often labeled Factor Rate in the summary box.

Not listed? Find the total payback, shown as Purchased Amount, Receivables Purchased Amount or Total Repayment, and divide it by the advance amount. Example: $67,500 ÷ $50,000 = 1.35.

Where to find this

The payment or remittance section of your agreement says whether debits are taken each business day or once a week. Your bank statement confirms it: look for the funder’s recurring ACH debits.

$

The fixed amount debited from your account each day or week.

Enter a payment greater than zero and less than the total payback.

Where to find this

Look for Daily Payment, Remittance, Specified Daily Amount, Periodic Amount or Initial Estimated Payment.

If your agreement lists only a Specified Percentage (the share of sales the funder takes), use the typical debit amount from your bank statement instead.

$

Origination, underwriting or other fees deducted before the money reached your account.

Fees must be less than the advance amount.

Where to find this

Check the fee schedule or summary box for Origination, Underwriting, Due Diligence, ACH Program or Administrative fees.

Shortcut: find the deposit from the funder on your bank statement (sometimes called the Net Funding Amount) and subtract it from the advance amount. The difference is your fees.

Estimated APR

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Enter your terms to see the result.

Total you pay back
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Cost of the advance
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Number of payments
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Approximate term
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Struggling with your payments or carrying more than one advance? A Valcor consultant can review your agreements and explain your options. The first consultation is free and confidential.

Get a free review Call 1-877-2-VALCOR

What happens next

  1. 1
    Send us your agreements. Share your cash advance contracts and recent bank statements with a Valcor consultant.
  2. 2
    Get a free, confidential review. We look at the true cost, the terms and how the payments fit your cash flow.
  3. 3
    See your options. You get a clear picture of the choices in front of you, with no obligation.
  • Helping businesses since 1994
  • Free, no-obligation consultation
  • Strictly confidential

“Valcor has proven to be truly instrumental in resolving a very stressful situation”

Steve J., Copier Manufacturing Company

This MCA calculator gives an estimate for comparison only and is not legal or financial advice. It assumes fixed payments, 252 business days a year for daily payments, and 52 weeks a year for weekly payments. Your actual cost depends on your agreement, including any reconciliation terms, early-payoff discounts, missed payments or additional fees. Nothing you enter is stored or sent. © 2026 Valcor. All rights reserved. This tool may not be copied or reproduced without permission.

How this MCA calculator works

Merchant cash advance funders usually quote a factor rate instead of an interest rate. For example, a 1.35 factor rate on a $50,000 advance means you pay back $67,500. However, the factor rate says nothing about how fast you pay it back.

This MCA calculator spreads the cost over your real payment schedule. It then converts that cost into an estimated APR, so you can compare your advance with a bank loan or a line of credit.

Factor rate vs. APR: why the numbers look so different

A factor rate is a flat multiplier. Because payments start the day after funding, you never keep the full amount for the whole term. As a result, the true yearly cost is far higher than the factor rate suggests. In the example above, a 1.35 factor rate repaid over about seven months works out to an APR above 100%.

Fees make it worse. If the funder takes out fees before the money reaches your account, you pay the same amount back on less cash. That is why the calculator asks for fees separately.

What to do if your MCA payments are too high

First, gather every cash advance agreement and your last three months of bank statements. Next, list each advance with its daily or weekly payment. Then talk to a restructuring consultant before you take a new advance to cover an old one.

Not sure how serious it is? Take our free, 2-minute Business Debt Stress Test to see how much pressure your debt is putting on the business.

Valcor has helped small and mid-sized businesses work out terms with their creditors since 1994. Learn more about business restructuring, debt mediation and lending, or compare your options with the U.S. Small Business Administration’s SBA loan programs.

MCA calculator FAQ

Is a merchant cash advance a loan?

Usually not, legally. Most agreements are written as a purchase of future receivables. That is why they show a factor rate instead of an interest rate. Still, an APR is the clearest way to compare what it costs.

How accurate is this MCA calculator?

It gives an estimate based on fixed payments. Your actual cost can differ if your agreement includes reconciliation, an early payoff discount, missed payments or extra fees.

Does Valcor see the numbers I enter?

No. The calculator runs in your browser, so nothing you type is stored or sent anywhere.