Daily payments (every business day)
| Factor rate | 3 months (63 payments) | 6 months (126 payments) | 9 months (189 payments) | 12 months (252 payments) |
|---|---|---|---|---|
| 1.10 | 80.5% | 40.2% | 26.8% | 20.1% |
| 1.15 | 119.0% | 59.4% | 39.6% | 29.7% |
| 1.20 | 156.5% | 78.1% | 52.0% | 39.0% |
| 1.25 | 193.1% | 96.3% | 64.1% | 48.1% |
| 1.30 | 228.8% | 114.1% | 76.0% | 57.0% |
| 1.35 | 263.8% | 131.5% | 87.6% | 65.6% |
| 1.40 | 298.0% | 148.5% | 98.9% | 74.1% |
| 1.45 | 331.6% | 165.2% | 110.0% | 82.5% |
| 1.50 | 364.6% | 181.6% | 120.9% | 90.6% |
Weekly payments
| Factor rate | 3 months (13 payments) | 6 months (26 payments) | 9 months (39 payments) | 12 months (52 payments) |
|---|---|---|---|---|
| 1.10 | 72.1% | 37.4% | 25.2% | 19.1% |
| 1.15 | 106.4% | 55.2% | 37.3% | 28.2% |
| 1.20 | 139.8% | 72.6% | 49.0% | 37.0% |
| 1.25 | 172.3% | 89.5% | 60.4% | 45.6% |
| 1.30 | 203.9% | 106.0% | 71.6% | 54.0% |
| 1.35 | 234.8% | 122.0% | 82.4% | 62.2% |
| 1.40 | 264.9% | 137.7% | 93.1% | 70.3% |
| 1.45 | 294.4% | 153.1% | 103.5% | 78.1% |
| 1.50 | 323.2% | 168.2% | 113.7% | 85.8% |
How to read the table
Each cell is the annual rate at which the payments repay the advance, by the actuarial method in Regulation Z Appendix J: payments are discounted by the number of calendar days since funding, and the daily rate is multiplied by 365. Daily schedules assume funding on a Monday and a payment every weekday, ignoring holidays.
Two patterns stand out. First, the term dominates: at 1.35, a three-month advance is roughly four times the APR of a twelve-month one, because the same cost is compressed into a quarter of the time. Second, weekly payments are slightly cheaper than daily ones over the same period, because you hold the money a few days longer on average.
A worked example of how to use it: an advance at a 1.30 factor rate, paid off in daily payments over six months, sits at 114.1% in the daily-payments table. Move to the twelve-month column at the same factor rate and it drops to 57.0%, almost exactly half. The dollar cost of borrowing is identical in both cases — 30% of the advance — but stretching the same cost over twice the time roughly halves the annual rate. That's the whole idea behind reading down a column instead of across a row: it isolates what the term alone is doing to the number.
What the table leaves out
- Fees deducted before funding. These raise the APR, sometimes by more than ten points on a short advance.
- Sales-based (holdback) repayment. The term, and so the APR, depends on your sales. See how holdbacks work.
- Early-payoff discounts. If your contract offers one and you use it, the real cost is lower.
The merchant cash advance calculator handles all three. For the reasoning behind the numbers, read factor rate vs. APR.
Sources
- CFPB, Regulation Z Appendix J: Annual Percentage Rate Computations for Closed-End Credit (accessed 2026-09-26)