Merchant Cash Advance APR Calculator
Calculate the true Annual Percentage Rate (APR) on merchant cash advances and daily swipe-machine financing in India.
About Merchant Cash Advances & POS Loans
Fintech lenders (BharatPe, Pine Labs, Paytm) offer advances against future daily credit card or QR swipe revenues. While marketed as simple factor fees, their effective annualized percentage rate (APR) is often substantial.
Formula
Factor Rate = Total Repayment / Advance Amount
Approximate APR = [ (Total Fee / Advance) / (Months / 12) ] × 100
Frequently Asked Questions
Why are POS loans more expensive than bank loans?
POS advances are unsecured and disbursed within 24 to 48 hours with minimal financial documentation, so lenders price in high risk margins.
How does daily repayment work?
Lenders automatically deduct a fixed percentage (10% to 20%) of daily QR or swipe machine settlements until the balance is cleared.
What if daily sales dip?
If sales drop, daily deductions decrease, but the loan term lengthens.
Can POS loans be refinanced with a bank loan?
Yes. Refinancing an MCA with a standard bank MSME term loan at 11% to 14% significantly reduces interest costs.
Calculate in three steps
- 1Enter your valuesUse the fields above and check the units shown beside each input.
- 2Run the calculationSelect Calculate to refresh the result with your latest values.
- 3Review or shareCompare the result, reset the form, print it, or share this page.