MCA Calculator: Payment, Factor Rate & Total Cost
Use this free merchant cash advance calculator to estimate total repayment, factor-rate cost, daily or weekly remittance, and an estimated APR before you apply. Adjust the sliders below to see how different terms affect your funding.
Funding Parameters
Estimated Results
$325,000
Cost of capital: $75,000
$500
Based on 15% of daily revenue
21.7 months
Approximately 650 business days
17%
Factor rate converted to an annual rate for comparison only
Estimates only. Actual factor rates, holdback percentages, and terms vary by underwriting. This calculator is for illustrative purposes and does not constitute an offer of funding. Contact us for a personalized quote based on your business qualifications.
Understanding MCA Terms
Advance Amount
The upfront lump sum you receive. Based on your monthly revenue and business performance.
Factor Rate
Multiplier that determines total remittance. A 1.30 factor rate on $100K = $130K total.
Holdback %
Percentage of daily/weekly revenue remitted until the total amount is collected.
Term Length
Estimated time to remit the full amount. Varies with your actual revenue performance.
Factor rate to APR: how to read the cost
A merchant cash advance is the purchase of your future revenue at a discount. Instead of an interest rate, it uses a factor rate — you multiply the advance amount by the factor rate to get the total amount to be remitted.
Factor rate vs. interest rate
A factor rate of 1.30 on a $50,000 advance means $65,000 is remitted in total — a $15,000 cost. Unlike interest, the factor cost does not shrink as you pay it down, and it does not reduce if you remit faster. That fixed nature is the single most important thing to understand before accepting an advance.
Why the estimated APR matters
The same dollar cost is a very different deal over 4 months versus 12 months. Converting to an estimated APR — shown in the results above — puts the cost on the same scale as other financing so you can compare honestly. Because remittance flexes with revenue, the real APR moves: a shorter actual term makes the effective APR higher, not lower.
Questions worth asking any funder
Ask for the factor rate, the total remittance amount, the estimated term, the remittance frequency and amount, whether there are origination or other fees, and what happens if revenue slows. An honest funder will answer all of these clearly.