Merchant Cash Advance Calculator
A merchant cash advance has no fixed monthly payment and no fixed end date. Enter the advance you need, the factor rate offered, your monthly card turnover and the holdback percentage to see your estimated deductions and how long the advance is projected to take to clear.
Merchant cash advances at a glance
A merchant cash advance is repaid as a fixed percentage of your card takings rather than a set monthly instalment. Total repayable is fixed by the factor rate at drawdown — typically 1.10 to 1.40 — and the contract length flexes with trading, most often clearing within 6 to 18 months.
- How it repays
- A holdback of 8%–25% taken automatically from daily card settlements
- Cost basis
- Factor rate, usually 1.10 to 1.40 — no APR, no compounding interest
- Contract length
- Not fixed — projected from card income, typically 6 to 18 months
- Security
- Unsecured against property; a personal guarantee may be required
- Eligibility
- Regular card takings, 6+ months trading, £10,000+ monthly turnover
Last reviewed: 25 August 2026 by the SME Finance Hub broking team. Editorial policy
Estimate your merchant cash advance
Your Funding Breakdown
If your card takings change
There is no fixed end date on a merchant cash advance. A busy period clears the advance sooner and a quiet one stretches it out, but the total repayable stays the same either way.
This calculation shows estimated costs based on your selections. Actual rates may vary based on your business profile and credit assessment.
Projections, not a fixed schedule
The contract length shown is a projection based on the card turnover you enter staying broadly steady. Seasonal trade, a strong quarter or a quiet month will all move the end date. The total repayable does not change.
How the projection is calculated
Three inputs decide everything. The advance is the cash you receive. The factor rate fixes the total repayable — an advance of £50,000 at 1.2 means £60,000 repayable. The holdback is the slice of each day's card takings the lender collects.
Multiply monthly card turnover by the holdback percentage and you have the expected monthly collection. Divide the total repayable by that figure and you have the projected contract length. At £30,000 of monthly card turnover with a 15% holdback, £4,500 is collected each month, so £60,000 repayable clears in roughly 13.3 months.
Because the collection is proportional, a merchant cash advance self-adjusts to trading conditions — the reason hospitality, retail and seasonal businesses favour it over a fixed-instalment loan. If you would prefer a known end date and a fixed monthly figure, compare it with our business loan calculator. For independent guidance on UK business funding options, see the government's business finance and support finder.
Worked merchant cash advance examples
| Advance | Factor rate | Total repayable | Card turnover | Holdback | Monthly collection | Projected length |
|---|---|---|---|---|---|---|
| £10,000 | 1.18 | £11,800 | £15,000 | 12% | £1,800 | 6.6 months |
| £25,000 | 1.20 | £30,000 | £25,000 | 15% | £3,750 | 8.0 months |
| £50,000 | 1.22 | £61,000 | £40,000 | 15% | £6,000 | 10.2 months |
| £100,000 | 1.25 | £125,000 | £80,000 | 18% | £14,400 | 8.7 months |
Illustrative figures assuming steady monthly card turnover. Actual factor rates and holdbacks are set by the lender after reviewing your card processing statements.
Related funding
- Card terminal loans for card-taking businesses
- Short-term business loans with fixed instalments
- Hospitality business loans
- Retail business loans
Other calculators
- Business loan calculator for interest-bearing term loans
- Factor rate calculator for fixed-cost short-term finance
Merchant cash advance questions
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