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Deal Sizing Calculator

Estimate the maximum MCA funding amount based on merchant revenue, time in business, and industry.

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How Is an MCA Deal Sized?

MCA deal sizing determines the maximum amount a funder will advance to a merchant based on their revenue profile, business history, and industry risk. Unlike traditional lending which relies on credit scores and collateral, MCA underwriting centers on bank deposit analysis -- specifically average monthly deposits, deposit consistency, and negative balance days. Most funders use a multiple of monthly revenue, typically 0.75x to 1.5x, adjusted for industry risk and time in business. A restaurant doing $60K/month in deposits with 2 years of history might qualify for $60K-$90K. The same revenue in a higher-risk industry like trucking might cap at $45K-$60K. This calculator applies standard underwriting heuristics to give you a pre-submission estimate so you can set merchant expectations and choose the right funder.

How to Use This Calculator

Enter monthly revenue from bank statements

Use the average of the last 3 months of bank deposits. Exclude transfers between accounts, loan proceeds, and one-time inflows that are not operating revenue. Funders will verify this against actual statements.

Set time in business

Most funders require a minimum of 6 months in business. Merchants with 2+ years get better terms and higher multiples. Time in business under 12 months typically caps funding at 0.5-0.75x monthly revenue.

Select the industry

Industry affects underwriting because some sectors have higher default rates. Restaurants, retail, and medical practices are considered lower risk in MCA. Construction, trucking, and e-commerce carry higher risk premiums.

Key Concepts

Revenue Multiple

The ratio of funded amount to monthly revenue. A 1.0x multiple on $50K/month means $50K in funding. Multiples range from 0.5x for thin-file merchants to 1.5x+ for strong profiles.

Daily Payment Burden

The daily ACH payment as a percentage of daily revenue. Sustainable burden is 10-20%. Above 25% increases default risk significantly and signals the merchant may be over-leveraged.

Industry Risk Tier

Funders categorize industries by default risk. Low-risk industries (medical, legal) get higher multiples and lower factor rates. High-risk industries (construction, trucking) get lower multiples and higher rates.

Expert Insights

The Art of Right-Sizing a Deal: Many brokers try to maximize deal size for maximum commission. This is short-term thinking. An oversized deal increases the daily payment burden, raising default risk and clawback probability. A right-sized deal that the merchant comfortably repays leads to a renewal at 50-60% paydown -- two commissions instead of one minus a clawback. The best brokers size deals at 80% of the maximum to build in a margin of safety.

Industry-Specific Sizing Nuances: Restaurant merchants have predictable daily credit card volume, making ACH payments reliable. Size to 1.0-1.2x. Construction merchants have lumpy revenue -- large deposits followed by dry periods. Size conservatively at 0.5-0.8x and match the term to their project cycle. Trucking is similar to construction but with additional factoring considerations. Understanding industry cash flow patterns is what separates good brokers from great ones.

Frequently Asked Questions

There is no hard regulatory cap. In practice, most single-position MCA deals fund between $10K and $500K. Larger merchants can access $1M+ through syndicated deals or split funding across multiple funders. The limiting factor is always monthly revenue and the resulting daily payment capacity.

Yes. Merchants with strong profiles (2+ years in business, consistent deposits, no NSFs, no existing positions, low-risk industry) can qualify for 1.2-1.5x monthly revenue. Some funders offer up to 2x for their best-tier merchants with proven MCA repayment history.

An existing position reduces the available daily payment capacity. If a merchant has a $500 daily payment on their first position and their daily revenue supports $1,200 total, a second position can only safely support $400-$500/day. This effectively caps the second-position deal at a lower amount. It is why stacking must be done carefully.

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.