Calculator · MCA payoff
Merchant Cash Advance Payoff and Refinance Calculator: Remaining Balance, Daily Outflow and What a Refinance Saves
Owners holding a merchant cash advance usually know the daily payment and not much else: not the remaining payback, not what share of revenue the payments take, and not what a term loan or line would do to the monthly outflow. This calculator answers all three from the numbers on your contract, adds any other open positions, and compares a refinance offer side by side, so the decision to refinance, consolidate or ride it out is made with the numbers in front of you.
How Do You Calculate a Merchant Cash Advance Payoff?
The total payback is the advance times the factor rate ($100,000 at 1.32 is $132,000). Divide it by the number of payments (an eight-month daily advance has about 173 business-day payments, so $763 a day) and multiply by the payments made to get what has been paid; the rest is the remaining payback, which is the payoff figure because factor-rate contracts owe the full amount regardless of timing unless an early-payoff discount is written in. Ask the funder for a payoff letter, since many offer a 5% to 20% discount on the remaining cost that the contract does not advertise. To compare a refinance, take the remaining balance (plus any origination fee), the loan’s APR and term, and compute the monthly payment; the difference between the current monthly outflow and the new payment is the cash flow freed. For a $100,000 advance at 1.32 over eight months with three months paid, the remaining payback is about $82,500, the daily outflow $763 (about $16,500 a month), and a 24-month refinance at 24% APR carries a payment near $4,500 a month, freeing roughly $12,000 of monthly cash flow at a cost of about $23,000 in interest over two years. Exit options are ranked in how to get out of a merchant cash advance.
MCA Payoff and Refinance Calculator
MCA Payoff and Refinance Calculator
Enter your current advance and a refinance offer. See the remaining balance, the daily outflow now, and what changes if you refinance.
Typically 1.15 – 1.50
Add the daily payments on any other positions
Online term loans: 10% – 36%
Estimates only. Factor-rate advances owe the full payback regardless of early payoff unless a discount is written into the contract; ask the funder for a payoff letter. Refinance terms depend on the lender’s underwriting.
How to Read the Results
- Remaining payback: total payback minus payments made. This is the figure to ask the funder to confirm in a payoff letter, and the figure a refinance has to cover.
- Current daily payment and monthly outflow: what the advance takes from the account today; add other positions to see the combined load.
- APR equivalent: a 1.32 factor over eight months is roughly 90% to 100% APR equivalent, which is why refinancing into a 24% loan can cost less in interest and free cash at the same time.
- Refinance payment and cost: a longer term lowers the payment and raises total interest; the calculator shows both so you can pick the term the business can carry.
- Cash flow freed: current monthly outflow (including other positions) minus the refinance payment. This is the number that decides whether the business survives the next slow month.
Convert any factor rate with the factor rate calculator; the consolidation structures for two or more positions are in reverse consolidation and merchant cash advance consolidation.
Worked Examples
| Advance | Factor / term | Months paid | Remaining payback | Daily payment | Refinance (24 months) | Monthly cash flow freed |
|---|---|---|---|---|---|---|
| $50,000 | 1.30 / 6 mo | 2 | $43,300 | $500 | 15% APR: $2,100/mo | +$8,700 |
| $100,000 | 1.32 / 8 mo | 3 | $82,500 | $763 | 24% APR: $4,500/mo | +$12,000 |
| $150,000 + $60,000 second position | 1.28 / 9 mo and 1.40 / 5 mo | 4 and 1 | $178,000 combined | $1,760 combined | Reverse consolidation, 18 mo: ~$6,200/wk → ~$2,800/wk | +$14,000 |
| $200,000 | 1.25 / 12 mo | 6 | $125,000 | $961 | Bank line at 9%: interest-only ~$940/mo | +$19,900 |
Figures rounded; refinance eligibility depends on credit (about 600+ for term loans and lines), deposits and how many positions are open. In the Federal Reserve’s 2026 survey, merchant cash advances had the lowest denial rate of any product (12%), which is also why so many businesses hold more than one.
Share of applicants fully approved, by product (Federal Reserve, 2026)
81% of applicants were approved for at least part of the request. Source: Federal Reserve Banks, 2026 Report on Employer Firms.
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Common Questions
Can I pay off a merchant cash advance early and save money?
Only if the contract includes an early-payoff discount or the funder agrees to one. Factor-rate advances owe the full payback regardless of timing; ask for a payoff letter, since many funders offer a 5% to 20% discount on the remaining cost when asked.
How much does it cost to refinance an MCA into a term loan?
The remaining payback plus the loan’s origination fee (1% to 5%) becomes the new principal, repaid at 10% to 36% APR over 12 to 36 months. On $82,500 at 24% over 24 months the interest is about $23,000, against daily payments that would otherwise take $16,500 a month for five more months.
What if I have two or more advances?
Add the other positions’ daily payments in the calculator to see the combined outflow. With two or more current positions, a reverse consolidation usually cuts the weekly outflow by a third to a half; with the positions mostly paid, a consolidation advance or a term loan refinance is the next step.
Does refinancing an MCA hurt my credit?
Refinancing into a term loan or line usually involves a soft pull to pre-qualify and sometimes a hard inquiry at funding, which costs a few points for a few months. Keeping advances current and reporting positive payments on a new loan helps the profile over time.
Is RAN Funding a lender?
No. RAN Funding is a business financing broker. We present your application to the funders in our network that fit your profile and show you the offers you qualify for; the funding partner sets the approval, amount, rate, fees and terms.
Sources
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks
- H.15 Selected Interest Rates (bank prime loan rate 7.00%) — Board of Governors of the Federal Reserve System
- Merchant cash advance disclosure laws by state — RAN Funding
See What You Qualify For
One application, about five minutes, soft pull only. A funding specialist tells you up front which products fit your file, what they cost and how fast each one funds.