How do I calculate MCA cost?

Multiply your advance amount by the factor rate (e.g., $10,000 * 1.3 = $13,000 total payback). The difference is your cost of capital.

What is a typical factor rate?

Factor rates usually range from 1.1 to 1.5, depending on your business risk, credit, and industry. Unlike interest rates, factor rates apply to the entire principal upfront.

CalculatorAI

MCA Calculator

MCA Calculator (Merchant Cash Advance)

Advance Amount ($)

Factor Rate

Typically between 1.1 and 1.5.

Term (Months)

Payment Frequency

payments

Enter advance details to calculate payback.

Understand Your Merchant Cash Advance

Merchant Cash Advances (MCAs) are a fast way to get capital, but the pricing can be confusing. Instead of an interest rate, they use a "Factor Rate." Our MCA Calculator breaks down the total payback and estimates your daily or weekly payments so you can ensure your cash flow can handle the debt.

Factor Rate vs. APR

A factor rate of 1.3 sounds like 30% interest, but because the term is often short (6-9 months), the annualized effective interest (APR) can be much higher—often 60% to over 100%. This tool helps you see the effective cost of borrowing.

Frequently Asked Questions

What is the "Holdback" percentage?

Some MCAs take a percentage of your daily credit card sales (e.g., 10%) instead of a fixed daily amount. This is called the holdback or retrieval rate.