MCA Calculator. True cost, in seconds.
Model the actual cost of a merchant cash advance — total payback, daily payment, payback period, and effective APR. Adjust factor rate and holdback to see how the math changes.
What the calculator is computing
An MCA isn't a loan; it's a sale of future receivables. The lender buys a fixed dollar amount of your future revenue, paid back via a percentage of daily sales until the agreed total is delivered. That structure is why MCAs use factor rates instead of interest rates, and why effective APR isn't disclosed up front in most contracts.
Four numbers determine the entire deal: advance amount (cash to you), factor rate (multiplier; 1.30 means $1.30 owed for every $1 received), holdback percentage (the share of daily revenue routed to repayment), and daily revenue (your business's average daily deposits). From those, every other figure is derived.
The four formulas
Total payback = advance × factor rate. A $100,000 advance at 1.32 factor means you owe $132,000 regardless of how fast you pay it back.
Daily payment = daily revenue × holdback percentage. $10,000 in daily revenue × 12% holdback = $1,200/day routed to repayment.
Payback period = total payback ÷ daily payment. $132,000 ÷ $1,200 = 110 days.
Effective APR = (factor rate − 1) ÷ (payback period in years) × 100. (1.32 − 1) ÷ (110 / 365) ≈ 106%. The shorter the payback period, the higher the effective APR — which is why "low" factor rates can produce eye-watering APRs.
Use the APR figure to compare across products
The single most useful output of this calculator is the effective APR. That's the number that lets you compare an MCA apples-to-apples against a term loan, SBA loan, line of credit, or any other financing. Factor rates alone are deliberately confusing — a 1.20 factor sounds like 20% but typically computes to 60–90% APR depending on payback speed.
If your calculated APR is in the 40–80% range, you're in the better half of the MCA market. If it's 80–120%, that's the typical mid-market. Above 120% APR, you're looking at the most expensive MCA tier — usually because the factor rate is high (1.45+), the payback period is short (60 days or less), or both. Read our MCA pillar for full context on when each tier makes sense.
What this calculator doesn't include
Real lender contracts often add costs on top of the factor rate: origination fees (typically 2–5% of the advance), underwriting fees ($395–$995 flat), and ACH fees ($25–$50 per debit). These can add 4–8% to the effective cost beyond what the factor rate alone implies. Always model your real contract numbers, not the headline factor rate.
The calculator also assumes fixed-percentage holdback (true for most MCAs). Some contracts use fixed daily payment structures — same $X every business day regardless of revenue — which exposes the merchant to default risk during slow periods. The math is identical for cost, but the cash-flow profile is materially different.
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