Total payback = funded amount × factor rate. The cost of the advance is the payback minus the funded amount. The payment is the payback divided by the number of payments in the term. For example, $100,000 at a 1.40 factor rate means $140,000 in total; over about 140 business days that's roughly $1,000 a day. The cost is fixed when you sign and doesn't grow.
What each number means
Funded amount
The money you receive. InstaFunders funds $10,000 to $2,500,000. The amount you're offered depends mostly on your monthly deposits and any existing advance payments; see the requirements.
Factor rate
A multiplier, usually written as a decimal like 1.30 or 1.45, that sets the total cost up front. It isn't an interest rate and it doesn't compound. The slider's default is only an example; your rate depends on your business. Our factor rate guide explains what moves it.
Term
Roughly how long payments will take, based on your revenue. Our terms run up to 10 months. A shorter term means larger payments for the same total; a longer one means smaller payments.
Daily or weekly payments
Payments are fixed ACH debits from your business account. Daily payments come out on business days; weekly payments come out once a week and are available in many cases. See weekly payments and how payments work.
Why the annual percentage rate looks high
A merchant cash advance's cost is fixed, but it's delivered over a few months, not years. When a short-term cost is expressed as an annual rate, the figure looks large even though the dollar cost is what you see above. Some states require funders to show an estimated APR alongside the dollar cost so you can compare products; see state disclosures. Compare offers on total payback and payment size, and read how to read an MCA offer.
Does the advance make sense for you?
The useful question isn't only "what does it cost?" but "what does it earn?" If $150,000 of inventory turns into $260,000 of sales within a few months, a $60,000 cost can be worth it. If the money would cover ongoing losses, no rate makes it a good idea. Our merchant cash advance guide covers when an advance fits and when another option, like a line of credit, is better.
More calculators
Turn a factor rate into an estimated annual rate.
Try it → RenewRenewal calculatorYour remaining balance and what a renewal would net.
Try it →Frequently asked questions
How do you calculate the payback on a merchant cash advance?
Multiply the funded amount by the factor rate. A $50,000 advance at a 1.35 factor rate has a total payback of $67,500, so the cost of the advance is $17,500. The total is fixed when you sign.
How is the daily payment estimated?
Divide the total payback by the number of business days in the estimated term (about 21.7 a month). The payment is based on an agreed percentage of your revenue, so it's set at a level your deposits can support.
Is the calculator's factor rate what InstaFunders charges?
No. The slider is for illustration. Your factor rate depends on your deposits, time in business, existing advances, credit and industry, and it's stated in your offer before you sign anything.
Does paying early reduce the cost?
With a merchant cash advance the purchased amount is fixed, so paying early doesn't reduce it automatically. InstaFunders offers early payoff discounts case by case; see paying off an MCA early.