The quote
Take the numbers from the term sheet or contract. The payback, the number of payments and every fee matter; leave optional boxes blank.
Edit the quote, then click Calculate.
Result
How it is calculated
Advance: you receive the advance minus fees on day 0 and repay the payback (advance × factor rate, or payment × number of payments) in equal daily or weekly payments. The periodic rate is the rate at which the funded amount equals the present value of the payments, found by bisection. It is multiplied by 252 (daily) or 52 (weekly) for the annualised cost, and compounded for the effective figure. Early payoff assumes no discount: the whole remaining payback is paid at that point. Term sensitivity keeps the total repaid fixed and changes the number of payments.
Factoring: you receive the advance rate × invoice now and the reserve back on collection minus fees. Each started fee period is billed in full. The annualised cost is fees ÷ advance × 365 ÷ days to collect.
Not modelled: variable holdbacks tied to card sales, personal guarantees, default and reconciliation terms, stacked advances, taxes and state disclosure rules. Unverified: checked by hand calculation and unit tests only; compare the numbers with your contract before you rely on them.
Common questions
What is a factor rate and how is it different from an APR?
A factor rate is a multiplier on the amount advanced: 1.35 means you repay $1.35 for every $1. It is not an annual rate. Because merchant cash advances are repaid in daily or weekly slices over a few months, the money is outstanding for far less than a year, so the same factor rate works out to a much higher annualised cost. This calculator converts the real payment schedule into an annualised rate.
How is the annualised cost calculated here?
It finds the periodic rate at which the amount you actually receive (the advance minus fees) equals the present value of every payment, then multiplies by 252 business days a year for daily payments or 52 for weekly. The compounded figure applies that periodic rate for a full year. This is the same internal-rate-of-return method behind a loan APR, applied to the schedule you enter.
Why does paying an advance off early not save money?
Most advances are priced as a fixed payback, not as interest that accrues over time, so paying early usually saves nothing in dollars while shortening the time the money was used. The annualised cost therefore goes up. Some contracts offer an early-payoff discount; if yours does, enter the discounted payback as the total you will repay.
Do fees change the true cost?
Yes. Origination, underwriting and broker fees are usually taken out of the advance before it reaches you, so you receive less than the headline amount but repay on the full amount. Enter them in the fees box and the tool prices the cost on the money you actually receive.
How is invoice factoring priced?
A factor advances a share of the invoice (often 80 to 95%), holds the rest as a reserve, and charges a fee per period, commonly a percentage per 30 days or per week. A period that has started is usually billed in full. When the customer pays, the reserve is returned minus the fees. The tool shows the fees, the reserve you get back, and the annualised cost on the money advanced.
What payment share of revenue is too high?
There is no fixed rule, but payments above about 10 to 15% of monthly revenue compete with payroll, rent and inventory. Enter your monthly revenue and the tool shows the share. Revenue-based holdbacks that flex with sales behave differently from fixed payments; this tool models fixed daily or weekly payments.
What does this leave out?
Variable holdbacks tied to card sales, personal guarantees, confession-of-judgment clauses, default and reconciliation terms, stacking with other advances, taxes, and state disclosure rules. It prices the schedule you describe and does not read your contract.
Is my financing data uploaded anywhere?
No. Everything you type stays in this browser tab. There are no accounts, cookies or analytics vendors.