MCA Calculator
Merchant Cash Advance Calculator
💡 MCA is not a loan - you repay a percentage of daily sales until the advance is paid.
Enter your advance details to see repayment analysis
Calculate Merchant Cash Advance repayment terms. Estimate daily payments, total cost, and payoff timeline based on your sales. Essential for small business financing decisions.
What is an MCA Calculator?
A Merchant Cash Advance Calculator helps business owners estimate repayment terms for cash advances based on daily sales. It calculates total repayment, daily payments, and estimated payoff time.
Key Formulas
Total Repayment = Advance Amount × Factor Rate
Daily Payment = Average Sales × Holdback %
Payoff Days = Total Repayment ÷ Daily Payment
How to Use
- Enter your desired advance amount (500,000)
- Input the factor rate (typically 1.1-1.5)
- Set your daily holdback percentage (10%-20%)
- Add your average daily sales
- View repayment projections and charts
Key Terms Explained
- Factor Rate: Multiplier determining total repayment (1.3 = 10,000 advance)
- Holdback %: Daily sales percentage withheld for repayment
- APR Equivalent: Estimated annualized cost for comparison (not actual interest)
Data Sources
Calculations based on:
- Industry-standard MCA repayment models
- Small Business Administration cash flow guidelines
- Common underwriting practices among MCA providers
Important Notes
- MCAs are NOT loans - no fixed term or interest rate
- Higher factor rates significantly increase costs
- Daily payments fluctuate with sales volume
- Early repayment typically doesn’t reduce fees
Frequently Asked Questions
Q: How is this different from a loan?
A: Loans have fixed payments - MCAs deduct percentage of daily sales.
Q: What’s a reasonable factor rate?
A: 1.2-1.3 is competitive; rates above 1.4 get expensive.
Q: Can I pay off early?
A: Usually yes, but you’ll still owe full factored amount.
Q: Why is my APR estimate so high?
A: Short repayment terms increase effective annual rate.
Q: How do holidays affect payments?
A: Most providers skip days with zero sales.