Merchant cash advance · Method
How the merchant cash advance calculator works
Use a factor rate and a share of card sales to explore contractual repayment and an uncertain sales-linked duration.
What you enter
- Advance amount
- Gross advance received, greater than zero.
- Factor rate
- Multiplier, not a percentage: from 1.00 to 3.00 is a calculation boundary, not provider pricing.
- Agreed share of card sales
- Greater than 0% to 100%. This applies to card sales, not all turnover.
- Estimated monthly card sales
- Greater than zero. Assumed constant solely to illustrate duration.
- Additional upfront fees (optional)
- Optional. Blank means zero assumed additional fees, not a promise of no charges.
Method and assumptions
Contractual collection total = advance × factor rate. The fixed financing cost is that total less the advance. A factor rate is not an annual interest rate or an APR.
Illustrative monthly collection = monthly card sales × agreed share. Duration = contractual total / monthly collection, using constant sales. The final collection is limited to the balance outstanding.
Additional entered fees are paid once upfront, not added a second time to collections. Sales after collection are before other business costs and tax, not profit.
Lower sales lengthen and higher sales shorten the illustration. Actual collections may be daily and provider terms may include other conditions. No early-payment saving is assumed.
Status of these figures
Illustrative only, not a binding finance offer. Costs vary by lender and applicant; additional fees may apply and eligibility is subject to assessment. Ocean Capital Exchange is an introducer, not the lender. Product-specific regulatory disclosures require review before production. A factor rate is not an APR. Repayment speed varies with card sales; no payoff date is guaranteed.
Not every commercial finance product is regulated, and regulatory treatment varies by product, provider and borrower. Ocean Capital Exchange introduces businesses to third-party providers and is not a lender. These disclosures are awaiting owner and regulatory review before production.
Questions about this calculator
Is a factor rate the same as APR?
No. A factor multiplies the advance to give the fixed contractual collection total. It does not express an annual interest rate or APR.
Is the repayment duration guaranteed?
No. The duration uses a constant card-sales assumption. Actual collections and the payoff date vary with sales and provider terms.
Independent background reading
These independent sources explain general concepts. They do not endorse Ocean Capital Exchange or confirm our providers, product availability or terms. Your provider’s agreement takes precedence over an illustration.