Merchant cash advance APR calculator
Estimated APR
125.9%
Very expensive.
- You receive
- £50,000
- You pay back
- £67,500
- Cost of the money
- £17,500
- Cost per £1 received
- £0.35
- 126 daily payments of
- £535.71
- Effective annual rate
- 251.1%
An estimate on the money you actually receive, with daily payments counted as 21 business days a month. Not an offer and not a lender's disclosure.
| Factor | 3 months | 6 months | 9 months | 12 months | 18 months |
|---|---|---|---|---|---|
| 1.10 | 76% | 38% | 26% | 19% | 13% |
| 1.15 | 113% | 57% | 38% | 29% | 19% |
| 1.20 | 149% | 75% | 50% | 38% | 25% |
| 1.25 | 183% | 92% | 62% | 46% | 31% |
| 1.30 | 217% | 109% | 73% | 55% | 37% |
| 1.35 | 250% | 126% | 84% | 63% | 42% |
| 1.40 | 283% | 142% | 95% | 71% | 48% |
| 1.45 | 314% | 158% | 106% | 79% | 53% |
| 1.50 | 346% | 174% | 116% | 87% | 58% |
This calculator turns a factor rate into an APR, so a cash advance can sit side by side with a loan. Enter the advance, the factor rate, the term and how often you pay, and it shows the total repaid, the cost, each payment and the APR on the money you actually receive.
Why you need to convert it yourself
Business finance for limited companies is not regulated by the Financial Conduct Authority, and merchant cash advances are not loans and are not FCA-regulated. The FCA's consumer credit promotion rules in CONC 3 don't apply to a promotion that "indicates clearly that it is solely promoting credit agreements … for the purposes … of a customer's business". So there's no representative APR on a business offer, and on a cash advance there's often no rate at all, just a factor rate. That's exactly why converting it yourself matters.
How to use it
- Advance. The headline amount on the offer, before fees.
- Factor rate. The fixed multiple you pay back, like 1.35. Total repaid = advance × factor rate.
- Term in months. How long the advance runs. For a holdback advance, estimate it (see below).
- Payment frequency. Daily (business days), weekly or monthly.
- Up-front fees. Anything deducted from the advance or paid at the start: admin, origination, broker or "processing" fees.
The method, exactly
- Daily means business days: 21 a month, 252 a year. Weekly is 52 a year. This is the convention most cash-advance calculators use, and it's an assumption, not a lender rule.
- Number of payments = term in months × payments per month, rounded to whole payments.
- Each payment = total repaid ÷ number of payments.
- Amount received = advance − up-front fees.
- APR is the periodic rate that makes those payments worth exactly the amount received, multiplied by the number of payment periods in a year. That's a nominal annual rate on the money you actually got, which is why fees push it up.
The calculator also shows the effective annual rate (the same periodic rate compounded over a year), which is always higher than the nominal APR.
Worked example
£10,000 at a 1.35 factor over 6 months, paid daily:
- Total repaid: £13,500
- Cost: £3,500
- 126 payments of £107.14
- APR: about 126%
Scale it up and the APR doesn't change: £50,000 on the same terms is £67,500 back in 126 payments of £535.71, still about 126%. Pay weekly instead and it's about 123%, because each payment comes slightly later.
Now change the term. The same 1.35 factor works out at about 250% over 3 months, 63% over 12 months and 42% over 18 months.
Holdback advances
If repayments are a percentage of card takings, there's no fixed term. Estimate one: months ≈ (advance × factor rate) ÷ (monthly card takings × holdback %). For £50,000 at 1.35 with a 10% holdback and £112,500 a month in card takings, that's £67,500 ÷ £11,250, so about 6 months. Run a busy month and a quiet month to see how far the APR can move.
Limitations
- It assumes equal payments. Real holdback payments rise and fall with takings.
- It doesn't know about fees charged later, renewal terms or early settlement discounts.
- It's an estimate for comparing offers. It isn't advice, an offer, or a statement of what any provider will charge.
Ready for a straight answer?
Two minutes of questions. One funding specialist. No impact on your credit score.
Questions owners ask
Why doesn't my cash advance offer show an APR?
Merchant cash advances are not loans and are not FCA-regulated, and the FCA's financial promotion rules don't apply to promotions made solely for business purposes. Nothing requires the provider to show you an APR, so this calculator works one out.
Is the APR here the same as a lender's official APR?
No. It's an estimate: the nominal annual rate on the money you actually receive, based on the term and payment frequency you enter. Treat it as a way to compare offers, not as a disclosure.
Why does a shorter term give a higher APR?
The fee is fixed by the factor rate, so paying it over 3 months instead of 12 means paying the same pounds for a quarter of the time. That roughly quadruples the annual rate.
What should I enter for a holdback advance with no fixed term?
Estimate the term: total repaid divided by your monthly card takings times the holdback percentage. Run it at a busy month and a quiet month to see the range.