MCA Cost Calculator
See exactly how much you'll repay, your daily/weekly payments, and the effective APR before you sign.
Calculate Your MCA Cost
Enter your advance details to see total repayment, payment schedule, and effective APR.
Lower factor rates = lower total cost
Shorter terms = higher daily payments, lower total cost
Percentage of daily sales deducted for repayment
Your MCA Breakdown
Total cost, payment schedule, and effective APR based on your inputs.
Cost Breakdown
Payment Schedule
Based on 9-month term with 15% daily holdback.
*This calculator provides estimates only. Actual MCA terms vary by provider, creditworthiness, and business performance. Effective APR is approximate and based on simple interest calculation for comparison purposes. Consult with a financial advisor before making funding decisions.
How to Use This MCA Calculator
Understand each input and what the results mean for your business.
Advance Amount
The lump sum you receive upfront. Typical MCA amounts range from $5,000 to $500,000, based on your monthly revenue.
Factor Rate
A multiplier that determines your total repayment. Lower rates (1.10–1.20) are better; higher rates (1.30+) mean higher costs.
Repayment Term
How long you have to repay. Shorter terms mean higher daily payments but lower total cost; longer terms spread out payments.
Real-World Example: Restaurant Expansion
See how a restaurant used a merchant cash advance to fund a kitchen renovation.
The Scenario
- Business: Family-owned restaurant in Chicago
- Monthly revenue: ,000 in credit card sales
- Advance needed: ,000 for new equipment
- Factor rate: 1.25 (average for restaurant industry)
- Holdback percentage: 15% of daily credit card sales
- Term: 9 months (typical for restaurant MCAs)
The Numbers
The restaurant received ,000 upfront, repaid ,500 over 9 months via 15% of daily credit card sales. The renovation increased monthly revenue by 30%, making the MCA a strategic investment despite the high cost.
Key takeaway: MCAs work well for businesses with consistent daily credit card sales that need fast capital for growth‑driven projects.
MCA Calculator FAQ
Common questions about merchant cash advance calculations.
What's the difference between a factor rate and an interest rate?
Factor rates are multipliers (e.g., 1.25) applied once to calculate total repayment. Interest rates (APR) compound over time. A 1.25 factor rate on a 6‑month term roughly equals a 50% APR, but MCAs aren't loans—they're purchases of future receivables.
Why is my effective APR so high?
MCAs are expensive capital because they're unsecured, fast‑funding options for businesses that can't qualify for traditional loans. High APRs reflect the risk to lenders and the convenience/speed provided to borrowers.
Can I negotiate a lower factor rate?
Yes — most providers have 0.05–0.15 of room from their opening quote. Get at least 3 competing written offers, show monthly revenue above $25,000, and counter with a specific target rate. On a $100,000 advance, moving from 1.35 to 1.25 saves $10,000 in fees. See our Negotiation Savings Calculator to run the math for your advance amount.
Should I choose a shorter or longer term?
Shorter terms reduce total cost (less time for fees to accumulate) but increase daily payments. Longer terms ease cash‑flow pressure but cost more overall. Choose based on your business's seasonal patterns and cash‑flow stability.
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