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Small Business Loan Calculator — Term Loan vs Merchant Cash Advance

Compare a fixed-rate term-loan scenario with the stated repayment and simple annualized factor cost of a merchant cash advance.

Quick answer: Compare a fixed-rate term-loan scenario with MCA total repayment and a clearly labeled simple annualized factor cost that is not APR. Enter Loan Amount, Contractual Interest Rate (not APR), Loan Term (years), and Origination Fee (%) to personalize the estimate. It returns Monthly Payment, Total of All Payments, and Total Interest Paid so you can compare the impact before choosing a next step. Use it to compare payment, APR, total cost, credit impact, and lender or card tradeoffs.

Monthly Payment
$2,052
Monthly Payment
$2,052
Total of All Payments
$123,099
Total Interest Paid
$23,099
Origination Fee
$1,000
Term loan vs MCA — total cost comparison
Term Loan Interest + Fee
$24,099
MCA Total Repayment
$125,000
MCA Finance Charge
$25,000
MCA Simple Annualized Cost (not APR)
25.00%
Diagnostic

This term loan costs $24,099 in modeled interest and the entered origination fee. The merchant cash advance finance charge is $25,000; its simple annualized cost estimate is 25.

The MCA percentage is not APR. Actual annualized cost depends on payment frequency, timing, holdback terms, sales volume, fees, and how quickly principal declines.

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What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare a fixed-rate term-loan scenario with MCA total repayment and a clearly labeled simple annualized factor cost that is not APR.

  2. 2

    Pressure-test one alternate scenario before deciding

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

Compare small business loan rates

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

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Guide
Best banks for small business loans: how to choose a lender inA plain guide to choosing a small-business lender: SBA preferred lenders, big banks, community banks, credit unions, and online lenders, and what each is best for.
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Top loan rates

Reviewed Aug 8, 2026 · Methodology

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Frequently Asked Questions

Everything you need to know.

What is a factor rate on a merchant cash advance?
A factor rate is the total repayment multiplier. It is not an interest rate or APR. A defensible APR comparison requires the net proceeds and actual timing and amount of every repayment.
What should I compare before accepting an advance?
Compare net proceeds, total repayment, fees, repayment frequency, holdback or receivables mechanics, prepayment terms, and a cash-flow APR or IRR calculated from the actual schedule.
Is the Small Business Loan Calculator — Term Loan vs Merchant Cash Advance free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Small Business Loan Calculator — Term Loan vs Merchant Cash Advance affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare small business loan rates, or run Money Map to compare this loans & credit decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (loans) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

A factor rate is a repayment multiplier, not an APR. Repayment frequency, holdback mechanics, timing, and fees are required to calculate a cash-flow APR or IRR, so this tool does not label its simple annualization as APR.

How to Use It

  1. 1Enter the amount, contractual interest rate, fee, and term for the traditional loan
  2. 2Enter the MCA factor rate and estimated repayment term in months
  3. 3Compare total repayment and the clearly labeled simple annualized factor cost
  4. 4Obtain a cash-flow APR or IRR using the actual repayment schedule before accepting an advance
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Compare small business loan rates