Merchant cash advance calculator
Enter the advance, factor rate, monthly card takings and the share of takings that goes to repayments to see the total repayable and an estimated time to repay.
Total repayable
€60,000
- Cost of the advance
- €10,000
- Repaid per month (at these takings)
- €7,200
- Estimated time to repay
- about 8.3 months
- Equivalent APR (collected daily over the estimated time)
- 71.41%
The cost is fixed up front by the factor rate. Repayments rise and fall with your card takings, so quieter months mean smaller payments and a longer term. The equivalent APR assumes the advance is collected every business day, as merchant cash advances are; a faster repayment means a higher APR.
Check eligibility for this amountIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
A merchant cash advance is repaid as a fixed share of your future card takings. The cost is set upfront by the factor rate: the total you repay is the advance multiplied by that rate.
Repayments rise and fall with your card sales, so a quiet month means smaller repayments and a longer term, and a busy month clears it faster. The cost stays the same either way.
For illustration only: €50,000 at a factor rate of 1.20 means €60,000 to repay, a €10,000 cost. If 12% of €60,000 monthly card takings goes to repayments, that is €7,200 a month, so the advance clears in a little over 8 months.
To compare an advance with a loan, look at the equivalent APR in the results, worked out over the estimated time to repay. For illustration only, the €50,000 example repaid in about 8.3 months is an equivalent APR of roughly 62%; the same cost over 18 months would be far lower. Ask the provider for the total repayable, any fees and what happens if takings drop sharply.
Want to understand the product first? Read our guide to merchant cash advance.
Merchant cash advance calculator: common questions
What is a factor rate?
A multiplier that sets the total you repay. A factor rate of 1.20 on €50,000 means repaying €60,000. It is not an annual interest rate, so a short repayment period can mean a high effective annual cost. Always ask for the total repayable and any fees in writing.
How is a merchant cash advance repaid?
Usually as a fixed percentage of your daily card takings, taken automatically by the provider through your card terminal or bank account. Busy days repay more and quiet days less. The total you repay is fixed at the start by the factor rate, so only the time it takes changes.
Who can get a merchant cash advance?
Irish limited companies that take regular card payments, such as hospitality, retail and service businesses. Providers often want around 6 months or more of card takings and a minimum turnover, so options may be fewer for a new company. Merchant cash advance providers are on our panel. Sole traders and partnerships cannot apply through Welcome Finance.
What happens if my card sales fall?
Your repayments fall too, because they are a share of takings. The total cost does not change, so the advance simply takes longer to repay. Some agreements set a minimum repayment or a maximum term, so check what happens if takings drop sharply for a long period.
Is a merchant cash advance a loan?
It is usually structured as the purchase of a share of your future card receipts rather than a loan. That is why it is priced with a fixed fee instead of an interest rate. Some providers offer a similar product as a business loan repaid from card takings, so read the agreement to see which you are signing.
Can I get a second merchant cash advance?
Often, once a good part of the first has been repaid. Many providers offer a renewal or top-up, which may settle the remaining balance from the new advance. Check how much of the new advance you actually receive and the total repayable. Taking advances from two providers at once can squeeze daily cash flow.
How do I compare an advance with a loan?
Work out how long the advance is likely to take to repay at your usual takings, then compare its fixed cost with the total interest and fees on a loan over a similar period. The same fixed cost repaid over 8 months is far more expensive per year than over 18 months.
Check in 60 seconds
Get real figures for your company
Checking involves no credit search and is not recorded on the Central Credit Register. No obligation.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
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