MCA Cost Explained (and APR)
Updated Today
FairlyFunded is referral-only. We are not a lender or underwriter; independent, licensed providers make all decisions. No borrower fees; no guarantees.
Merchant cash advances (MCAs) are priced using a factor rate (e.g., 1.3). You receive an amount today and repay a fixed total (amount × factor) via daily/weekly debits or a split of card receipts. Use this page to understand payback, total cost, and an approximate APR.
Key terms
- Advance amount: funds you receive today.
- Factor rate: multiplier applied to the advance (e.g., 1.3 means repay 130%).
- Total payback: advance × factor.
- Fees: some providers add origination/processing/wire fees.
- Prepayment: ask about discounts if you repay early.
Illustrative calculator
Total payback: $26,000
Total cost: $6,000
Approx. APR: 60.0%
This APR is a rough estimate for education only. Providers may calculate differently.
Examples
$20,000 at 1.30, 6 months → payback $26,000; approx APR ~60%. $50,000 at 1.25, 9 months → payback $62,500; approx APR ~40%.
What to ask providers
- All fees, total payback, and any prepayment discounts in writing.
- Decision SLA and payout timing. Renewal policy and stacking rules.
- Whether LOC, equipment, or AR might be cheaper for your scenario.
See your first‑route options
We are referral-only and not a lender. Independent, licensed providers make all decisions. No guarantees.