Working Capital Cost Calculator: What an Advance Really Costs
Multiply the amount by the factor rate to get the total payback; the cost is the difference. Because an advance is repaid within months, the estimated annual rate is usually far higher than the factor suggests. Enter the numbers from your own offer.
Enter the amount, factor rate and term from your offer.
Before you request funding
What we need before we can send a request
Months in business, monthly revenue and documents, by product.
Request working capital
One short form; a funding partner whose program may fit reaches out.
Estimates only, not an offer. BrevoCapital is operated by Merchant Dash LLC, 12325 Academy Rd #11, Philadelphia, PA 19154, and is not a lender. Funding partners set pricing and disclose their fees before you sign.
Frequently Asked Questions
- How do I calculate the cost of a merchant cash advance?
- Multiply the amount you receive by the factor rate to get the total payback. The cost is the payback minus the amount. Divide the payback by the number of payments to get each daily or weekly payment.
- Why is the estimated annual rate so much higher than the factor rate?
- A factor rate is a one-time charge, but repayment starts right away and usually ends within months. Spread over a short term, the same dollar cost works out to a much higher annual rate. The calculator finds the rate at which your payment stream repays the amount you received.
- Is the estimated APR the same as the one on my offer?
- Not necessarily. This estimate assumes fixed payments over the term you enter. Many offers repay a share of daily sales instead, so the real term can be shorter or longer. California and New York require funders to disclose an estimated annual percentage rate on many commercial financing offers; ask the funding partner for theirs.
- Does BrevoCapital set the factor rate?
- No. Funding partners set all pricing and must explain their fees before you sign. BrevoCapital is operated by Merchant Dash LLC, is not a lender, and does not charge you a fee to ask.