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Deal Profit Analyzer

Break down total profit per MCA deal including upfront commission, buy/sell spread, and monthly residual.

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What Is a Deal Profit Analysis?

A deal profit analysis breaks down every revenue stream you earn from a single MCA transaction. Most brokers focus only on upfront commission, but the full picture includes three income layers: the upfront points the funder pays at funding, the buy/sell spread between the factor rate you negotiate with the funder and the rate you present to the merchant, and the ongoing residual from daily payment collections. When you see all three layers, you can optimize for total deal economics instead of just chasing the biggest upfront check. A deal with a lower commission but a 10-point spread and strong residual can be worth significantly more over the life of the merchant relationship than a high-commission deal with zero spread.

How to Use This Calculator

Enter the funded amount

The amount wired to the merchant. This is the base for commission calculations. Do not include fees or the total repayment amount.

Set buy rate and sell rate

The buy rate is what the funder charges you. The sell rate is what you present to the merchant. The difference is your spread. Example: buy at 1.25, sell at 1.35 means a 10-point spread on $100K = $10,000 in spread income.

Enter commission and residual split

Commission is the upfront percentage paid at funding. The residual split determines your share of ongoing collection income. Some funders offer higher commissions but zero residual, and vice versa.

Key Concepts

Buy Rate

The factor rate the funder quotes to your ISO. This is your cost basis. The difference between buy rate and sell rate is your spread profit.

Sell Rate

The factor rate you present to the merchant. You control this within limits set by the funder and state usury/disclosure regulations.

Spread

The difference between sell rate and buy rate, multiplied by the funded amount. A 0.10 spread on $100K equals $10,000. This is often the largest single profit component on a deal.

Residual Split

Your percentage of the daily collection revenue that the funder shares with the ISO. Typically 50/50 to 80/20 depending on your agreement.

Expert Insights

Spread vs. Commission: The Math Most Brokers Ignore: On a $150K deal, 10 points of commission is $15,000. But a 12-point spread (buy at 1.28, sell at 1.40) yields $18,000 in spread income on top of whatever commission the funder pays. Many funders will reduce their commission in exchange for a lower buy rate, letting you capture more spread. Run the numbers both ways before submitting -- the spread-heavy structure often wins.

Watch for Spread Compression: As states implement APR disclosure requirements (New York, California, Virginia, Utah, Connecticut), merchants become more rate-sensitive. This compresses your sell rate while buy rates remain sticky. The brokers who survive spread compression are those who build funder relationships that deliver best-in-market buy rates.

Frequently Asked Questions

Yes, and most experienced brokers do. The funder pays you upfront commission points, and the difference between buy and sell rate is additional income. Some funders even offer residual on top of both. Structure varies by funder -- always ask for a full compensation breakdown.

A typical spread is 5-15 factor rate points. On a deal where the buy rate is 1.30 and the sell rate is 1.40, the spread is 0.10 (10 points). On $100K funded, that is $10,000. Spread widens on higher-risk deals and compresses on competitive A-paper deals.

It depends on your cash flow needs and clawback risk. Commission is clawable if the merchant defaults. Spread income is typically not clawed back because it is baked into the factor rate. If you are concerned about clawbacks, favoring spread over commission reduces your risk exposure.

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.