A merchant cash advance quoted at a 1.35 factor and a term loan quoted at 18% APR can’t be compared until they’re priced on the same basis. This analyzer does that: enter both offers and see total cost, equivalent APR, and cash-flow demand side by side — computed with the same actuarial (IRR) method documented on our methodology page.
The MCA’s “equivalent APR” is a translation for comparison, not a rate the funder quoted — MCAs are generally not loans. The term is an estimate; results show the cost range at ±20% of your estimate. This is a cost comparison, not financial advice.
The cash advance’s “equivalent APR” is computed by the TILA actuarial method on your projected payment schedule — it answers “if this were a loan repaid on this schedule, what APR would it carry?” It is not a rate the funder quoted. MCA holdbacks vary with revenue, so the term is an estimate: the true cost range is shown at ±20% of your estimated term. Figures are pre-tax and ignore renewals or stacked advances. This is a cost comparison, not financial advice.