Calculators · MCA repayment
MCA repayment calculator
Enter the advance, factor rate and term from any offer - ours or anyone else's - and see the daily payment, total cost and an honest APR equivalent. No email required.
Most offers land between 1.22 and 1.45. Your contract states it plainly.
Repaid in daily amounts on business days, about 21 per month.
- Total payback
- $99,000
- Cost of capital
- $24,000
- Cost per dollar advanced
- 32 cents per dollar
- Approximate APR equivalent
- 87%
The payback is fixed on day one and never grows. APR is shown only so you can compare against loan offers - an advance is a purchase of future receivables, not a loan, and paying early does not reduce the total unless your deal carries a prepayment discount. Most of ours do.
See what your file could supportHow the math works
A merchant cash advance has three numbers that matter: the advance, the factor rate, and the term. Advance times factor equals the total payback. Payback divided by the number of business days in the term equals the daily payment. That is the whole formula - no compounding, no accruing interest, no moving target. If a broker cannot show you these three numbers plainly, that tells you something.
The number most merchants skip is the daily payment as a share of daily deposits. If you deposit $50,000 a month, that is roughly $2,380 per business day coming in. A $589 daily payment is about 25 percent of that - workable for many files, heavy for thin-margin ones. Run your own numbers above before you sign anything.
How is an MCA payment calculated?
Multiply the advance by the factor rate to get the total payback, then divide by the number of payments. A $75,000 advance at a 1.32 factor over 8 months is $99,000 paid back as roughly $589 per business day. The total is fixed on day one and never grows.
What is a normal factor rate?
Most offers land between 1.22 and 1.45. Stronger files - consistent deposits, healthy balances, longer time in business, no stacked positions - price at the low end. First positions price better than second and third positions.
Why does the APR equivalent look so high?
Because the term is short. A 1.32 factor over 8 months costs the same dollars as over 14 months, but the shorter term compresses that cost into less time, which inflates the annualized number. Compare offers on total dollars and daily payment first, then use APR only to compare against actual loans.
Does paying an advance off early save money?
Only if the deal includes a prepayment discount, which most of the deals we place do. Without one, the payback amount is contractual and early payoff does not reduce it. Ask before you sign - we show prepayment terms with every offer.
Related: factor rates explained · how much you could qualify for · industries we fund