What is a commission clawback in MCA?

If a merchant defaults early — commonly inside the first 30 to 90 days, depending on the agreement — the funder can claw back some or all of the commission paid. Experienced brokers reserve a portion of every commission against clawbacks instead of spending it all on funding day.

MCA ISO Commission Calculator

Q: How is MCA broker commission calculated?

Most commonly as points (percentage) on the funded amount: a $100,000 funding at 8 points pays $8,000 gross commission. Some programs pay on the payback amount instead — always confirm the base before comparing offers, because the same points on a different base is a different number.

Funded amount

The amount the merchant receives, not the payback amount.

Commission points: 8

Points on funded amount. Programs differ — some pay on payback instead.

Your share of the commission: 100%

100% if you're paid direct. Lower it if you split with a rep, house, or placement partner.

Clawback reserve: 10%

Portion held back against early-default clawbacks. Conservative shops reserve rather than spend day one.

Cost to source this deal ($)

Leads, ads, data, dialer time — whatever it took to get this file.

Estimated net commission

$7,200

on a $100,000 funding at 8 points

Gross commission$8,000

Split to others−$0

Clawback reserve held−$800

Acquisition cost−$0

Reserve released if no early default+$800 later

Educational illustration only. This calculator models arithmetic, not any specific program or offer. It is not a quote, a guarantee, or a statement of what any lender or Elite Funders will pay on any deal. Actual commissions, splits, clawback terms, and payment bases vary by program, product, deal size, and partner type. Nothing is saved or transmitted — the numbers stay in your browser.

How the math works (plain text)

This is the same logic the interactive tool runs, stated in plain text.

Gross commission = funded amount × points ÷ 100. Your share = gross × your split percentage. Net commission = your share − clawback reserve (your share × reserve percentage) − cost to source the deal. The reserve isn’t lost — it’s released back to you later if the merchant doesn’t default early.

Worked example (the calculator’s defaults): a $100,000 funding at 8 points, paid direct (100% split), with a 10% clawback reserve and $0 acquisition cost:

Line	Amount	How it’s computed
Gross commission	$8,000	$100,000 × 8 ÷ 100
Split to others	−$0	$8,000 × (100% − 100% share)
Clawback reserve held	−$800	$8,000 share × 10% reserve
Acquisition cost	−$0	as entered
Estimated net commission	$7,200	$8,000 − $0 − $800 − $0
Reserve released if no early default	+$800 later	the held reserve returns

How to read the numbers

Three things separate brokers who keep their commission from brokers who give it back:

Know the base. Eight points on funded amount and eight points on payback are different checks. Confirm the base in writing before comparing programs.
Reserve for clawbacks. Most funder agreements claw back commission on early defaults — commonly inside the first 30–90 days, terms vary. Treating commission as spendable on funding day is how a good month becomes a bad quarter.
Count acquisition cost per funded deal, not per lead. If it takes $3,000 of marketing to fund one deal, that $3,000 belongs in this math.

At Elite Funders, ISO partners typically earn 6–12 points on eligible funded revenue-based transactions; commissions vary by product, deal size, and partner type. For how programs structure payouts differently, see how to compare ISO programs and how broker commission works.

Calculator FAQs

How is MCA broker commission calculated?

Most commonly as points on the funded amount: a $100,000 funding at 8 points pays $8,000 gross. Some programs pay on payback instead — always confirm the base before comparing offers, because the same points on a different base is a different number.

What is a commission clawback?

If a merchant defaults early — commonly inside the first 30 to 90 days, depending on the agreement — the funder can claw back some or all of the commission. Experienced brokers reserve a portion of every commission against this instead of spending it all on funding day.

How many points do ISOs typically earn?

It varies widely by program, product, deal size, and partner type. At Elite Funders, ISO partners typically earn 6–12 points on eligible funded revenue-based transactions; commissions vary by product, deal size, and partner type.

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