Cash Advance Rate Calculator

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function calculateCashAdvance() { var advanceAmount = parseFloat(document.getElementById("advanceAmount").value); var feePercentage = parseFloat(document.getElementById("feePercentage").value); var dailyRate = parseFloat(document.getElementById("dailyRate").value); var numberOfDays = parseInt(document.getElementById("numberOfDays").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(advanceAmount) || isNaN(feePercentage) || isNaN(dailyRate) || isNaN(numberOfDays) || advanceAmount <= 0 || feePercentage < 0 || dailyRate < 0 || numberOfDays <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } var upfrontFee = advanceAmount * (feePercentage / 100); var dailyInterest = advanceAmount * (dailyRate / 100); var totalInterest = dailyInterest * numberOfDays; var totalCost = upfrontFee + totalInterest; var effectiveAPR = (totalCost / advanceAmount) * (365 / numberOfDays) * 100; // Approximation resultDiv.innerHTML = "

Cash Advance Cost Breakdown

" + "Cash Advance Amount: $" + advanceAmount.toFixed(2) + "" + "Upfront Fee (" + feePercentage + "%): $" + upfrontFee.toFixed(2) + "" + "Daily Interest (" + dailyRate + "%): $" + dailyInterest.toFixed(2) + "" + "Total Interest for " + numberOfDays + " Days: $" + totalInterest.toFixed(2) + "" + "Total Cost of Cash Advance: $" + totalCost.toFixed(2) + "" + "Approximate Effective APR: " + effectiveAPR.toFixed(2) + "%"; }

Understanding Cash Advance Fees and Rates

A cash advance, often obtained through a credit card or a dedicated service, provides immediate funds but typically comes with significant costs. It's crucial to understand these fees and rates to avoid unexpected expenses and to make an informed decision before proceeding.

Types of Cash Advance Costs

When you take a cash advance, you'll generally encounter two primary types of charges:

  • Upfront Fee: This is a one-time charge applied at the time of the transaction. It's usually a percentage of the cash advance amount. For example, a 3% fee on a $500 cash advance would be $15.
  • Interest Charges: Unlike standard credit card purchases, interest on cash advances often starts accruing immediately from the day you take the advance. There is typically no grace period. The interest is calculated daily based on a specific daily rate, which is derived from an Annual Percentage Rate (APR).

How to Calculate the Cost

Our Cash Advance Rate Calculator helps you estimate the total cost associated with your cash advance. You'll need to provide:

  • Cash Advance Amount: The total sum of money you wish to borrow.
  • Fee Percentage: The percentage charged as an upfront fee by the provider.
  • Daily Rate: The daily percentage rate used to calculate interest. This is often a small decimal value (e.g., 0.1% which is equivalent to an APR of approximately 36.5%).
  • Number of Days: The duration for which you intend to hold the cash advance before repaying it fully.

The calculator will then compute the upfront fee, the total interest accrued over the specified period, the total cost of the cash advance, and an approximate Effective Annual Percentage Rate (APR) to give you a clearer picture of the borrowing cost.

Example Scenario

Let's say you need to take a cash advance of $500. The credit card charges a 3% upfront fee and has a daily rate of 0.1%. You plan to repay the entire amount in 10 days.

  • Cash Advance Amount: $500
  • Fee Percentage: 3%
  • Daily Rate: 0.1%
  • Number of Days: 10

Using our calculator:

  • The upfront fee would be $500 * (3/100) = $15.
  • The daily interest would be $500 * (0.1/100) = $0.50.
  • The total interest for 10 days would be $0.50 * 10 = $5.00.
  • The total cost of the cash advance would be $15 (fee) + $5 (interest) = $20.00.
  • The approximate Effective APR would be (($20 / $500) * (365 / 10)) * 100 ≈ 146%.

This example highlights that cash advances can be very expensive, especially if held for a short period due to the immediate interest accrual and upfront fees. Always consider alternative, lower-cost borrowing options if possible.

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