Consolidating one or more high-cost MCAs into a single term loan typically cuts effective APR from 40-60% to 22-35% and replaces daily debits with a single monthly payment. The math has to pencil — this calculator shows whether the consolidation reduces your monthly cash-flow burden AND your total interest cost.
Quick answer: Model refinancing your merchant cash advance into a term loan: enter your MCA balance, daily debit, and a new-loan rate — see the monthly cash-flow change, total cost difference, and whether it pays off.
New monthly payment = standard amortization (P × r) ÷ (1 − (1 + r)^−n) where r = APR ÷ 12 Monthly cash-flow change = Current monthly MCA debit − New monthly payment Total interest delta = (New monthly payment × Term in months − Refi amount) − Remaining MCA cost
Assumptions
New monthly payment ≈ $3,250 — frees up ~$4,750/month of cash flow vs current debits. Refi pencils on both axes (lower payment AND lower total interest vs MCA cost).
Usually worth modeling if your MCA's effective cost is high and daily debits are straining cash flow. Refinancing one or more MCAs into a single monthly term loan can lower both the effective rate and the payment burden — but only if the new loan's terms are actually better. Enter your current balance, daily debit, and a realistic new-loan rate; the calculator tells you whether the refinance reduces your monthly outflow and your total cost, or just moves the problem around.
When it wins on both axes: the new monthly payment is below your current combined MCA debit, AND the total cost of the new loan is below the remaining cost of the MCA. Both matter. A refinance can lower your total interest while raising the monthly payment, or free up monthly cash flow while costing more overall — either can be the wrong trade depending on whether cash flow or total cost is your binding constraint. The calculator flags a win only when both improve.
The tool converts your MCA daily debit into a monthly figure (daily debit × about 21 business days) and projects the remaining MCA cost over the months left. It then amortizes the new term loan at its APR and term using a standard payment formula. It compares the two on monthly payment and on total cost, and returns the cash-flow change and total-cost difference. It doesn't model origination fees on the new loan — subtract those from the savings if they're material.
Often, yes — the most common exit is refinancing the remaining balance into a lower-cost term loan or line of credit, which pays off the MCA and replaces daily debits with one monthly payment. Because most MCAs price a fixed total payback rather than daily-accruing interest, paying early doesn't always save as much as you'd expect, so confirm the exact payoff amount with your funder before refinancing. This calculator helps you see whether the replacement loan is genuinely cheaper.
It depends on the lender and your file. Lower-cost term-loan pricing generally rewards reasonable personal credit, several months in business, and steady deposits — and stacked MCA positions or very recent defaults make approval harder. There's no single cutoff, and rate and term come from underwriting, so the honest answer is: it varies. Run the numbers here first so you know the payment you're aiming for before you shop offers.
A merchant cash advance isn't technically a loan — it's a purchase of a slice of your future revenue. A funder advances a lump sum, then collects repayment as a fixed percentage of your daily card/bank receipts (a 'daily debit') until you've paid back the advance plus a fee, expressed as a factor rate (commonly 1.1–1.5×) rather than an APR. Because repayment is a fixed dollar debit taken daily regardless of how well business is going that day, the effective annualized cost is usually far higher than a factor rate alone suggests — often in the 40–60%+ effective-APR range once you convert the daily debit and payback period into equivalent loan terms. If you already have an MCA and want to see what replacing it with a fixed-term loan would cost instead, run your balance and daily debit through the refinance calculator above.
It depends on what you're funding and whether cheaper options are actually available to you. An MCA can be worth it when you need cash in days rather than weeks, don't qualify for bank or SBA financing yet, and the use of funds (e.g., inventory for a known near-term sales spike) will generate enough incremental revenue to clearly outrun the cost. It's usually not worth it as a way to cover ongoing losses, or when you already qualify for a term loan or line of credit — MCA effective cost is typically well above those alternatives. The honest test isn't the product name, it's the math: does the revenue this unlocks beat what you're paying for it, and can you survive the daily debit if a slow week hits? If you're already carrying one and the math no longer pencils, this calculator shows whether swapping it for a term loan improves your monthly cash flow, your total cost, or both.