MCA Payback Calculator
Calculate your merchant cash advance payments, payback timeline, and true cost. Enter your advance amount, factor rate, holdback percentage, and daily revenue to see what you will actually pay and how it compares to a traditional loan.
Calculate your daily or weekly MCA payments, payback timeline, and true cost. See how the holdback percentage affects your cash flow.
Merchant cash advances use a factor rate and holdback on daily revenue instead of a traditional interest rate and fixed payments.
The total cash advance you receive upfront.
The percentage of daily revenue withheld as repayment. Typically 10% to 20%.
Your average daily credit card or total sales. Used to calculate holdback payments.
Typical MCA Cost
This cost is in the typical range for merchant cash advances. Make sure your revenue can comfortably support the daily payments.
~45%
Estimated APR
Daily Payment
$750
15% holdback
Total Repayment
$130,000
$30,000 in costs
Payback Period
8.1 mo
174 payments
Cost Per Dollar
$0.30
for every $1 advanced
Cash Flow Impact
Monthly Revenue
$108,350
Monthly Holdback
-$16,253
You Keep
$92,098
Payback Progress
MCA vs Term Loan Comparison
This MCA
$130,000
total repayment
$30,000 in costs
vs
Term Loan at 12%
$104,552
total repayment
$4,552 in interest
A term loan at 12% for the same period would save you approximately $25,448.
▶Full Cost Breakdown
| Item | Amount |
|---|---|
| Advance Amount | $100,000 |
| Factor Rate | 1.30 |
| Total Repayment | $130,000 |
| Total Cost (fee) | $30,000 |
| Daily Payment | $750 |
| Number of Payments | 174 |
| Estimated Payback Period | 8.1 months |
| Estimated APR Equivalent | ~45% |
| Cost Per Dollar Borrowed | $0.30 |
At $750 per day, make sure this fits your cash flow.
See if you qualify for lower-cost business financing. No impact to your credit score.
How Merchant Cash Advance Repayment Works
A merchant cash advance is not a loan. It is a purchase of your future receivables. The provider gives you a lump sum, and you repay by having a percentage of your daily revenue (the holdback) automatically debited from your bank account. The total you repay is the advance amount multiplied by the factor rate. A $100,000 advance at a 1.30 factor rate means you repay $130,000, regardless of how long it takes. This calculator shows you the daily payment, timeline, and true cost.
Understanding Factor Rates vs APR
Factor rates look simple: 1.20 means you repay $1.20 for every $1 advanced. But this number hides the true annual cost. A 1.20 factor rate on a 6-month payback works out to roughly 40% APR. The same factor rate on a 12-month payback is closer to 20% APR. The shorter the payback period, the higher the effective APR. Use our factor rate to APR converter for a more precise conversion, or this calculator to see both the factor rate cost and the estimated APR side by side.
The Holdback and Your Cash Flow
The holdback percentage determines how much of your daily revenue goes toward repayment. A 15% holdback on $5,000 daily revenue means $750 per day is withheld. That adds up to roughly $16,250 per month. If your operating expenses are tight, that holdback can create cash flow pressure. Before taking an MCA, make sure your remaining revenue covers rent, payroll, inventory, and other obligations. If not, a line of credit with lower payments might be a better fit.
When an MCA Makes Sense (and When It Does Not)
MCAs work best for businesses that need fast capital, have strong daily sales, and plan to repay quickly. They are commonly used for inventory purchases, emergency repairs, or bridging a short cash gap. They do not make sense for long-term financing, large investments, or businesses with tight margins. If you qualify for a term loan, you will almost always pay less. SBA loans, in particular, offer rates between 6% and 13% for qualified borrowers. Talk to a funding specialist to find out what financing options are available beyond MCAs, with no impact to your credit score.
How It Works
Enter Advance Details
Input your advance amount, factor rate, holdback percentage, and whether payments are daily or weekly.
Add Your Revenue
Enter your average daily revenue so the calculator can determine your actual holdback payment amount.
See the Full Picture
Get your payment amount, payback timeline, estimated APR, cash flow impact, and a comparison to term loan pricing.
What You Get
Daily or Weekly Payment
The exact amount withheld from your revenue each day or week based on your holdback percentage.
Payback Timeline
How many weeks or months until the advance is fully repaid at your current revenue level.
Estimated APR Equivalent
The factor rate converted to an approximate annual percentage rate, so you can compare to traditional loans.
Cash Flow Impact
A visual breakdown of how much revenue goes to the holdback versus what stays in your account.
Term Loan Comparison
Side-by-side view of what the same financing would cost as a traditional term loan at a typical rate.
Payback Progress Chart
A week-by-week visual showing how quickly you pay down the advance balance.
MCA Payback Calculator — Frequently Asked Questions
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