Enter the desired withdrawal amount, the number of periods (months), and the final charge or amount paid for the cash advance to calculator the cash advance interest rate.

## Cash Advance Interest Formula

The following equation is used to calculate a cash advance interest rate.

I = P / AW * 100 / m

- Where I is the cash advance interest (%)
- P is the final amount paid
- AW is the cash taken out at time of withdrawal
- m is the number of periods or months.

## Cash Advance Interest Definition

A cash advance interest is defined as the total interest paid on a cash advance or a cash that you take out as credit.

## Cash Advance Interest Example

How to calculate cash advance interest?

**First, determine the initial withdrawal.**Determine how much cash was initially withdrawn or taken out as credit.

**Next, determine the total number of periods.**Determine the number of months before the credit or cash advance is paid off.

**Next, determine the total amount paid.**Calculate the final amount paid for the cash advance.

**Finally, calculate the cash advance interest.**Calculate the interest using the equation above.

## FAQ

**What is cash advance?**

Cash advance is a credit or loan taken out in advance of payment of that cash using an interest rate.