MCA Calculator

Quick answer: Enter the funded amount, factor rate, any fees, and how the advance is repaid. The calculator estimates your total payback, cost of capital, net funds, payment size, number of payments, term, and an estimated APR. Total payback is the funded amount times the factor rate. The estimated APR shows what that cost looks like as an annual rate once you account for paying the balance down.

Use it to compare a merchant cash advance (MCA) offer with a term loan or line of credit, or to compare two MCA offers side by side. The results are estimates for education only, not an offer.

Advancery Business Funding, LLC is an independent business funding broker (ISO) in Shrewsbury, NJ. We are not a lender. Third-party funding partners make all underwriting, approval, pricing, and timing decisions, and funding is not guaranteed.

How the MCA calculator works

The calculator uses the same math as our guide to factor rates:

• Total payback = funded amount × factor rate.
• Net funds received = funded amount − fees taken out of the funds.
• Cost of capital = total payback − net funds. This is the full dollar cost, including fees.
• Payment = total payback ÷ number of payments for a fixed term, the amount you enter for a fixed payment, or holdback % × monthly revenue ÷ 21 business days for a holdback.
• Estimated APR = the periodic rate at which your payments equal your net funds, times the number of payment periods in a year (252 business days or 52 weeks).

The last payment may be smaller than the others, and the calculator accounts for that. It assumes payments start one period after funding and that revenue stays steady in holdback mode.

How to read your results

• Total payback is what the funding partner collects in total under the factor rate.
• Net funds received is what actually reaches your account after fees. Compare offers on this number, not only on the funded amount.
• Cost of capital is the dollar price of the money. If you’re using the funds for a specific job or inventory buy, check that the expected profit covers it.
• Payment and number of payments show the cash-flow load. A large daily debit can strain a slow week even when the total cost looks manageable.
• Estimated term is how long repayment takes at that payment, in months.
• Estimated APR annualizes the cost so you can line it up against loan offers. It is a simplified nominal estimate, not a formal APR disclosure. The calculator also shows an effective annual rate, which compounds and is a different, higher figure.

Factor rate vs. APR

A factor rate is a total-cost multiplier, not an annual rate. A 1.30 factor means $1.30 is repaid for each $1 advanced. It does not mean 30% a year.

Because you pay the balance down as you go, you only have the full amount on day one, while the dollar cost stays fixed. That is why the estimated APR is usually much higher than “factor minus one,” and why it rises when repayment is faster.

EXAMPLE C (illustrative only, from our factor rate guide): $50,000 funded at a 1.30 factor rate is $65,000 total payback, or $15,000 cost. With equal business-day payments and no extra fees:

Repayment period	Simplified estimated APR
About 12 months (about 252 business days)	≈ 55%
About 6 months (about 126 business days)	≈ 109%

Weekly payments give similar results: about 54% over roughly 12 months and about 107% over roughly 6 months. The factor rate and the dollar cost are the same in every row. Only the speed of repayment changes. These figures are example math, not offers or averages.

Holdback vs. fixed daily or weekly remittance

The factor rate sets how much you repay. The remittance sets how it’s collected.

• Fixed daily or weekly: the same amount is debited each business day or each week until the total payback is collected. The term is predictable, but the payment doesn’t drop in a slow week unless the contract offers a reconciliation.
• Percentage holdback: the funding partner collects an agreed share of your sales or deposits. On a strong day more is remitted, and on a slow day less is. The term moves with revenue. In this calculator, holdback mode treats your estimated monthly revenue as steady and collects it over 21 business days a month, so real results will vary.

With a holdback, higher sales can shorten repayment and raise the estimated APR, even though the factor rate and total payback stay the same.

What changes the cost of an MCA

• The factor rate. It sets the total payback. Pricing is the funding partner’s decision.
• Fees. Origination, ACH, wire, or administrative fees lower your net funds and raise the estimated APR. Ask for the full fee list and enter it.
• Speed of repayment. A shorter term, a bigger fixed payment, or a higher holdback raises the estimated APR for the same dollar cost.
• Early-payoff terms. Some contracts offer a discount for paying early, and many don’t. Paying faster lowers the total cost only if the contract says so.
• Reconciliation. Whether fixed payments can be adjusted to actual sales affects your cash flow in slow periods.

Is a merchant cash advance a loan?

Often not. Many merchant cash advances and some revenue-based financing agreements are structured as a purchase of future receivables, not a loan. The calculator still shows an estimated APR because it’s the most practical way to compare a factor-rate offer with a loan or line of credit. Read your contract to confirm what you’re signing.

Comparing offers with a broker

As an MCA broker, Advancery reviews your business information and presents it to third-party funding partners. If more than one partner makes an offer, we help you line up total payback, net funds, payments, and estimated APR before you sign. Timing depends on the partner and your documents. Our funding timeline guide explains what can speed things up or slow them down, and same-day funding is not guaranteed.

MCA calculator FAQs

How do I calculate MCA payback?

Multiply the funded amount by the factor rate. For example, $50,000 at a 1.30 factor rate is $65,000 total payback, or $15,000 cost. Fees taken out of the funds lower what you actually receive, so subtract them to get your net funds.

How do I convert a factor rate to APR?

Find the periodic rate at which your payments equal the net funds you receive, then multiply it by the number of payment periods in a year (252 business days or 52 weeks). The calculator does this for you. The result is a simplified estimate, not a formal APR disclosure.

Why is the estimated APR higher than the factor rate minus one?

Because you pay the balance down as you go. You only have the full amount at the start, but the dollar cost stays fixed. In our illustrative example, a 1.30 factor repaid over about 12 months is about 55% estimated APR, and about 109% over about 6 months.

What's the difference between a holdback and a fixed daily payment?

A fixed daily or weekly payment debits the same amount each period, so the term is predictable. A holdback collects an agreed percentage of sales or deposits, so payments and the term move with revenue. Ask whether a fixed-payment contract offers reconciliation in slow periods.

Is a merchant cash advance a loan?

Often not. Many merchant cash advances are structured as a purchase of future receivables, not a loan. The calculator shows an estimated APR only so you can compare a factor-rate offer with a loan or line of credit. Read your contract to confirm.

Does paying an MCA off early lower the cost?

Only if the contract says so. Some agreements offer an early-payoff discount and many don't. With a fixed total payback and no discount, paying faster raises the estimated APR without lowering the dollar cost.

What fees should I include in the calculator?

Include any fees taken out of the funds or charged at closing, such as origination, ACH, wire, or administrative fees. Ask the funding partner for the full fee list. Fees lower your net funds and raise the estimated APR.

Will using the calculator or applying affect my credit?

The calculator runs in your browser and doesn't ask for any credit information. If you apply, the initial review at Advancery may use a soft credit inquiry. The funding partner you move forward with may run additional credit checks.

See which funding partners may fit

Have an offer in hand, or want to see what may be available? Start the quick online application. At Advancery, the initial review may use a soft credit inquiry. The funding partner you move forward with may run additional credit checks. Funding isn’t guaranteed, and every decision is made by the funding partner.

Prefer to talk it through? Call (844) 423-8623.

Advancery Business Funding, LLC is an independent business funding broker (ISO) and is not a lender. Funding is provided by third-party funding partners, who make all underwriting, approval, pricing, and timing decisions. Calculator results, factor rates, holdback percentages, dollar amounts, and estimated APRs on this page are simplified estimates and examples for education only. They are not offers, quotes, averages, or formal APR disclosures. Many merchant cash advances, and some revenue-based financing agreements, are structured as a purchase of future receivables, not a loan. Read your contract. Funding is not guaranteed.
Office: 1151 Broad Street, Suite 212, Shrewsbury, NJ 07702.