Merchant Cash Advance Calculator
Calculate the true cost of a merchant cash advance. Understand factor rates, holdback percentages, and compare MCA offers to make informed decisions.
Factor rate multiplied by advance = total payback
% of daily sales withheld for repayment
Important Note
MCAs are not loans and don't have traditional APRs. The "effective APR" shown is for comparison purposes only. Actual costs may vary based on your sales volume.
* This calculator provides estimates. Actual terms depend on your business profile, credit card sales, and funder requirements.
Understanding Merchant Cash Advances
What is an MCA?
A Merchant Cash Advance is not a loan—it's an advance on your future sales. You receive a lump sum and repay through a percentage of your daily credit card transactions.
Factor Rate vs APR
Factor rates (e.g., 1.35) show the total amount you'll repay. Multiply your advance by the factor rate to get total payback. Unlike APR, factor rates don't account for time.
Holdback %
The percentage of daily sales withheld for repayment. Higher holdback = faster payoff but more cash flow impact.
Best For
- • High credit card volume
- • Fast funding needs
- • Lower credit scores
- • Variable revenue
Considerations
- • Higher cost than loans
- • Daily/weekly payments
- • No early payoff savings
- • Cash flow impact
Frequently Asked Questions
How is MCA different from a business loan?
Unlike loans, MCAs are advances on future sales. There's no fixed term—repayment varies with your revenue. MCAs typically have higher costs but faster approval and more flexible qualification.
What's a typical factor rate for MCA?
Factor rates typically range from 1.10 to 1.60, meaning you'll repay 10-60% more than you borrowed. Your rate depends on time in business, monthly revenue, credit score, and industry.
Can I pay off my MCA early?
Unlike loans, most MCAs don't offer early payoff discounts. You'll typically pay the full agreed amount regardless of how quickly you repay, though some funders offer early payoff benefits.
How quickly can I get funded?
MCAs are among the fastest funding options. Many businesses receive funds within 24-48 hours of approval, with some same-day funding available for qualified applicants.