Merchant Cash Advance Cost CalculatorFree online financial calculator — instant results, no sign-up
Calculate a factor-rate advance's total repayment and equal daily remittance.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Merchant Cash Advance Cost Calculator
The Merchant Cash Advance Cost Calculator estimates total repayment, financing cost, and equal daily remittance for an advance priced with a factor rate. It multiplies the advance amount by the factor rate, then spreads repayment evenly across the specified remittance days. With a $30,000 advance, a 1.3 factor rate, and 180 remittance days, it shows $39,000.00 in total repayment, $9,000.00 in financing cost, and a $216.67 daily remittance.
- Advance amount ($)
- The advance principal in dollars used to calculate repayment, with a default of $30,000.
- Factor rate (ratio)
- The dimensionless multiplier applied to the advance amount to determine total repayment, with a default of 1.3.
- Remittance days (days)
- The number of days on which equal remittances are assumed to occur, with a default of 180 days.
Formula and method
T = A × f; C = T − A = A × (f − 1); D = T ÷ n. With the default inputs: T = 30000 × 1.3 = $39,000.00; C = 39000 − 30000 = $9,000.00; D = 39000 ÷ 180 ≈ $216.67.
- AAdvance amount in dollars.
- fFactor rate expressed as a ratio, not an annual interest rate.
- nNumber of remittance days.
- TTotal repayment in dollars.
- CFinancing cost in dollars, calculated as total repayment minus the advance amount.
- DEstimated equal daily remittance in dollars per remittance day.
Multiply the advance amount by the factor rate to find total repayment. Subtract the advance amount to find the factor-based financing cost, then divide total repayment by the number of remittance days to estimate an equal daily remittance. Retain full precision during calculation and round monetary outputs to two decimal places for display.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Advance amount30000 $
- Factor rate1.3 ratio
- Remittance days180 days
Results
- Total repayment$39,000.00
- Financing cost$9,000.00
- Daily remittance$216.67
How to use the Merchant Cash Advance Cost Calculator
- 1Enter the advance amount in dollars; use 30000 for the default example.
- 2Enter the factor rate as a ratio; use 1.3, not a percentage, for the default example.
- 3Enter the number of remittance days; use 180 for the default example and count payment days rather than automatically counting calendar days.
- 4Read the calculated total repayment of $39,000.00 and financing cost of $9,000.00.
- 5Review the estimated daily remittance of $216.67 against your business's available cash flow on payment days.
Reading your result
Total repayment is the advance plus the factor-based financing cost: $39,000.00 with the default inputs. Financing cost is the amount above the advance principal: $9,000.00, excluding any charges not captured by the factor rate. Daily remittance is total repayment divided evenly across 180 remittance days: $216.67 after rounding. It represents an assumed payment-day obligation, not necessarily a payment on every calendar day.
Limitations
This calculator assumes a fixed factor rate and equal remittances over a positive whole number of payment days. Actual merchant cash advances may collect a percentage of sales, allow reconciliation adjustments, or have a variable repayment duration. Separate fees, withheld charges, penalties, and contractual early-payoff terms are not modeled. A factor rate is not an APR; this calculation does not annualize cost or account for the timing of cash flows. Rounding the daily remittance to cents may require a final-payment adjustment to match total repayment exactly.
Common questions
Does a 1.3 factor rate mean a 30% APR?+
No. A 1.3 factor rate means total repayment is 1.3 times the advance, so the default $30,000 advance carries a $9,000.00 factor-based cost. That is 30% of the advance over the repayment period, not an annualized rate.
Should the 180 remittance days include weekends and holidays?+
Only if your agreement requires remittances on those days. The calculator divides repayment by 180 payment days; it does not determine a calendar payoff date or exclude nonpayment days automatically.
Will my actual daily withdrawal always be $216.67?+
Not necessarily. The $216.67 result assumes equal remittances across 180 days. A sales-based holdback or reconciliation provision can change actual withdrawals, and cent rounding may require an adjustment to the final payment.
Does using fewer remittance days reduce the $9,000.00 financing cost?+
Not in this calculation. With the advance amount and factor rate unchanged, total repayment remains $39,000.00 and financing cost remains $9,000.00; fewer remittance days increase the daily amount. Any early-payoff discount must come from the agreement rather than this formula.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.