FREE UK BUSINESS FINANCE CALCULATOR

Merchant Cash Advance Cost Calculator

Estimate the fixed cost, total repayable and how long an advance could take to clear based on your average card sales.

Enter your figures

Change any figure to update the estimate immediately.

A factor rate of 1.25 means £1.25 is collected for each £1 advanced.

Reviewed by Phil RigneyCommercial Finance Broker, TMS Finance
Last reviewed17 September 2026

How the MCA calculation works

A merchant cash advance uses a factor rate rather than a conventional interest rate. Multiply the advance by the factor rate to estimate the total amount to be collected. For example, £20,000 at a factor rate of 1.25 produces a total of £25,000.

Why the repayment period can change

Collection is normally linked to a percentage of card sales. When sales rise, the advance may clear faster. When sales fall, collection usually slows. The calculator uses your average monthly card sales, so the period shown is only an estimate.

What the calculator does not include

It does not assess eligibility, credit quality, personal guarantees, existing finance or individual provider criteria. Those points can materially change the terms available.

Protect day-to-day cash flow

The percentage collected comes from sales before the remaining income is available for wages, stock, rent, tax and other commitments. Test the collection against a quieter month, not only the current average.

WORKED EXAMPLE

£50,000 against £60,000 monthly card sales

This illustration uses a factor rate of 1.25 and a collection rate equal to 15% of average monthly card sales.

Advance
£50,000
Fixed finance cost
£12,500
Total repayable
£62,500
Estimated monthly collection
£9,000
Estimated repayment period
6.9 months
Monthly card revenue retained
£51,000

The advance may clear faster if card sales rise and more slowly if sales fall. Compare the fixed cost with a loan and consider whether the collection leaves enough working capital.

COMMON QUESTIONS

Questions business owners ask before applying

What does an MCA factor rate mean?

The factor rate is multiplied by the advance to calculate the total amount collected. For example, an advance of £20,000 at 1.25 produces a total repayment of £25,000 and a fixed finance cost of £5,000.

Is a factor rate the same as an APR?

No. A factor rate does not show an annual percentage cost. The effective cost depends partly on how quickly the advance is collected. Do not compare a factor rate directly with an annual interest rate.

What happens when card sales fall?

Collections are commonly linked to a percentage of eligible card sales, so they may reduce when sales fall and increase when sales rise. Provider terms differ, and minimum or fixed collection arrangements may apply.

How long does a merchant cash advance take to repay?

The calculator estimates the period from average card sales and the collection percentage. Actual timing changes with trading levels, refunds, seasonality and the provider's collection rules.

Can I repay or refinance an MCA early?

The agreement determines whether early settlement reduces the remaining cost. Some fixed finance costs do not reduce in the same way as interest on a conventional loan. Obtain a written settlement figure before refinancing.