Business Financing Payment Calculator
Estimate payments for term loans, merchant cash advances, and MCA buyouts. No contact information required to calculate.
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For illustrative purposes only. Calculator results are estimates and do not constitute an offer, approval, financing commitment, legal advice, or guarantee of available terms. Actual products, costs, payments, rates, terms, and eligibility depend on underwriting and the applicable financing agreement.
How Business Loan Payments Are Calculated
A traditional business loan payment is calculated through amortization. Each periodic payment covers the interest accrued on the outstanding balance plus a portion of principal. Early in the term, more of each payment goes to interest; later, more goes to principal. The payment amount depends on three inputs: the loan amount (principal), the interest rate, and the term length. A longer term lowers each payment but increases total interest paid over the life of the loan.
Understanding MCA Factor Rates
A Merchant Cash Advance uses a factor rate rather than an interest rate. The factor rate is a decimal multiplier that sets the total payback amount. For example, a $50,000 advance at a 1.30 factor rate has a total payback of $65,000. Because a factor rate is a flat multiplier — not an amortized rate — it doesn't reduce as you pay down the balance the way loan interest does. This is why comparing an MCA factor rate directly to a loan APR can be misleading. Read more in our guide to how MCA factor rates work.
Daily vs Weekly MCA Payments
MCA repayment is typically collected as fixed daily or weekly ACH debits. Daily payments are smaller per debit but drawn every business day; weekly payments are larger but drawn once per week. The total monthly burden is similar either way, but the frequency affects your cash flow differently. Businesses with steady daily deposits may handle daily payments; businesses with lumpier deposits may prefer weekly. See our full comparison of daily vs weekly MCA payments.
Monthly Payment Equivalents
To compare an MCA's burden to a traditional monthly loan, it helps to convert daily or weekly payments into a monthly equivalent. That's simply the sum of all the daily or weekly payments over a month. Our calculator shows this figure so you can compare an MCA structure side by side with a term loan payment.
MCA Buyout Calculations
The MCA buyout calculator adds up your existing positions — balances and payments — to show your total current payment burden, then compares it against an illustrative new structure. This helps you understand the size of your current obligation and whether exploring a different structure — like a term loan or private credit — may be worthwhile. For businesses carrying multiple positions, see our article on buying out multiple MCAs.
Why Calculator Results Are Estimates
Calculator results are estimates for planning and discussion only. Actual rates, terms, payments, and eligibility depend on underwriting and vary by provider, program, and the specifics of your business and transaction. The calculator does not constitute an offer, a quote, or a guarantee of any terms or approval.
Frequently Asked Questions
A typical business loan payment is calculated using the loan amount, interest rate, and term. The lender amortizes the loan — meaning each payment covers both interest and a portion of principal — so the loan is fully repaid by the end of the term. Our calculator estimates the periodic payment based on these inputs.
An MCA uses a factor rate (a decimal multiplier) rather than an interest rate. The total payback equals the advance multiplied by the factor rate. For example, $100,000 at 1.35 = $135,000 payback. That total is collected through daily or weekly payments. A factor rate is not an APR and doesn't account for the time value of money the same way.
Daily MCA payments are fixed ACH debits drawn from your business bank account every business day. They're smaller per payment but very frequent. The total daily amount depends on the advance, factor rate, and expected term.
Weekly MCA payments are fixed ACH debits drawn once per week. They're larger per payment than daily payments but less frequent. The right frequency depends on your deposit cadence and cash flow.
A monthly payment equivalent converts daily or weekly MCA payments into a single monthly figure so you can compare the burden to a traditional monthly loan payment. It's the sum of the daily or weekly payments over a month.
The buyout calculator adds up your existing MCA positions — balances and payments — to estimate your total current payment burden, then compares it against an illustrative new structure. This helps you see the size of your current obligation and whether a different structure might be worth exploring.
Calculator results are estimates for discussion and planning only. Actual terms, rates, payments, and eligibility depend on underwriting and vary by provider and program. The calculator does not constitute an offer or a guarantee of any terms or approval.
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