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Broker Commission Calculator

Calculate your gross and net commission on any MCA deal after revenue splits.

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What Is an MCA Broker Commission?

An MCA broker commission is the fee a funder pays you for originating a merchant cash advance deal. It is typically expressed as a percentage of the funded amount -- anywhere from 5% on low-margin renewals to 15%+ on first-position deals with strong merchants. Unlike loan officer compensation, MCA commissions are paid at funding with no licensing requirement in most states (though New York, California, Virginia, Utah, and others are changing that). The revenue share split determines how much of your gross commission goes to your ISO, office, or upstream partner. A 70/30 split means you keep 70% and 30% goes up. Knowing your true net per deal tells you whether a funder relationship is worth your time and what your minimum deal size should be.

How to Use This Calculator

Enter the funded deal amount

This is the amount the funder actually wires to the merchant, not the total repayment or RTR. Most MCA deals fund between $25K and $500K.

Set your commission rate

Commission rates vary by funder and deal risk. First-position A-paper deals often pay 8-12%. Stacked or C-paper deals may pay 15-20%+ because the funder prices the risk into the factor rate.

Enter your revenue share split

If you work under an ISO, enter the percentage that goes to the office. If you are the ISO owner with sub-brokers, enter 0% to see your full gross. Typical splits range from 50/50 for new brokers to 80/20 or 90/10 for top producers.

Key Concepts

Gross Commission

The total fee paid by the funder to the brokerage on a funded deal, calculated as funded amount multiplied by the commission percentage. This is the top-line number before any splits.

Revenue Share Split

The contractual division of commission between the broker and their ISO or office. A 70/30 split means the broker keeps 70%. Splits often improve as monthly volume increases.

Net After Split

The amount the individual broker actually takes home after the office or partner share is deducted. This is the number that matters for your personal income projection.

Points

Industry shorthand for commission percentage. "10 points" means 10% of the funded amount. Some funders quote in basis points (bps) where 1000 bps equals 10%.

Expert Insights

Commission Rate Negotiation Leverage: Your commission rate is not fixed. Funders compete for deal flow, and brokers who consistently send clean submissions with high approval rates can negotiate 1-3 additional points. Track your approval-to-submission ratio and present it during funder reviews. A broker with a 60%+ approval rate has significant leverage because the funder spends less on underwriting dead deals.

The Hidden Cost of High Splits: A 90/10 split sounds great until you realize the ISO providing it offers zero back-office support, no CRM, no submission portal, and no funder relationships beyond two second-tier shops. Compare the total value: a 70/30 split at an ISO with 40+ funder relationships, a dedicated underwriting liaison, and marketing support often produces higher net income than a 90/10 split where you are doing everything yourself.

Frequently Asked Questions

The industry average sits between 8% and 12% for standard first-position deals. Higher-risk stacked positions or merchant cash advance deals with shorter terms can command 15-20%. Renewal commissions are typically lower at 5-8% because the funder already has a payment history.

Yes. MCA broker commissions are taxable income. If you earn over $600 from a funder, they will issue a 1099-NEC. Most brokers operate as independent contractors or through an LLC, and should set aside 25-30% of gross income for federal and state taxes plus self-employment tax (15.3%).

Yes. Most funder agreements include a clawback provision -- typically 90 to 180 days. If the merchant defaults within that window, the funder can deduct some or all of the commission from your future earnings. This is why deal quality matters more than deal volume.

Results are estimates for educational purposes only. Actual amounts may vary based on your specific financial situation, market conditions, and other factors. This calculator does not constitute financial advice.