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Advance payment calculator
The number that matters on an advance is not the factor rate — it is what leaves your account every business day. Enter the advance, factor rate and term to see the daily debit, total payback, and what share of your monthly revenue it takes.
- Total payback
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- Cost of capital
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- Share of monthly revenue
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- Estimated APR
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Illustration only. Assumes a fixed payback over the term shown and roughly 21 business days per month. Actual rates, terms and payment schedules are set by the funding partner and depend on your business. This is not an offer of credit.
How to read the result
The factor rate tells you what the money costs. The daily debit tells you whether you can live with it.
A $50,000 advance at 1.35 over 6 months is $67,500 of payback across roughly 126 business days — about $536 a day, every business day, before you have paid rent, payroll or suppliers.
The share-of-revenue test
Run this before you sign: divide the monthly payback by your average monthly deposits. Under 10% is generally workable for most businesses. Between 10% and 20% you need to be confident about the next two quarters. Above 20% and one slow month becomes a problem, which is how businesses end up stacking a second advance on top of the first.
Reconciliation is worth asking about
Some advances include a reconciliation clause that adjusts your payment down if revenue drops. Some do not. Two offers with identical factor rates are not identical if one reconciles and the other does not. Ask, and get the answer in the contract, not on a phone call.
What to check on any offer
- The factor rate and the total payback in dollars
- The payment amount and frequency, in writing
- Whether there is a reconciliation clause
- Whether early payoff reduces the total (on most advances it does not)
- Any origination, underwriting or ACH fees deducted from the funded amount
- Whether a personal guarantee or a confession of judgment is attached
Straight answers
What is a holdback percentage?
On a true merchant cash advance tied to card sales, the holdback is the fixed percentage of daily card receipts the funder takes — typically 8% to 20%. When sales are slow the dollar amount falls with them. Fixed-ACH advances work differently: the same amount comes out whether you had a good day or not.
How much of my revenue should go to an advance payment?
As a working rule, keep total monthly payback under 10% of your average monthly deposits. Between 10% and 20% is manageable if the next two quarters are predictable. Above 20%, a single slow month starts to hurt.
What happens if I miss a payment?
It depends on the contract. Most funders will attempt the debit again and charge a fee. Repeated misses can trigger a default clause. If you see a shortfall coming, call the funder before the debit fails — a scheduled adjustment is a very different conversation from a bounced ACH.
Can I have more than one advance at a time?
It happens, and the industry calls it stacking. Most funders explicitly prohibit it and many contracts treat it as a default event. It also compounds the daily debit problem that caused the shortfall in the first place. If you are considering a second advance to cover the first, that is the moment to talk to someone rather than sign.