MCA Offer Comparison Calculator
Put two MCA offers next to each other and see which one actually costs less.
What Is the MCA Offer Comparison Calculator?
You've got two MCA offers on your desk. One has a lower factor rate, the other has a longer term. Which one's cheaper? It's not obvious, and that's the problem. A lower factor rate doesn't automatically mean a lower cost -- the repayment term and holdback percentage massively change the effective annual price. Plug both offers in here to see total repayment, daily payment, and effective APR side by side. The calculator flags the winner. Business owners regularly pick the "cheaper-looking" offer and end up paying more because a shorter repayment period jacks up the APR. Don't fall for it. Look at the full picture.
How to Use This Calculator
Enter Offer 1 Details
Plug in the funded amount, factor rate, holdback percentage, and estimated term in days for the first MCA offer you received.
Enter Offer 2 Details
Same four numbers for the second offer. Use the terms each MCA company quoted you, or estimate from your daily revenue.
Compare the Results
Check total cost, daily payment, and effective APR for each offer. The calculator calls out the winner on total cost.
Consider Cash Flow Impact
Cheapest total cost isn't always the smart move. If one offer has a daily payment that'll suffocate your cash flow, the savings don't matter if you can't make payroll.
Key Concepts
Total Cost vs. Daily Cost
Total cost is how many extra dollars you pay above what you borrowed. Daily cost is what you lose from cash flow every single day. Both matter. If your margins are thin, you may need the lower daily payment even if it costs more overall.
Effective APR Comparison
APR puts different timeframes on equal footing. A 1.2 factor rate over 90 days is far more expensive annualized than 1.35 over 365 days. Without APR, you're comparing apples to spark plugs.
Hidden Fees
Some offers bury origination fees, broker fees, or UCC filing fees that don't show up in the factor rate. Get a complete fee breakdown from each provider before you run this comparison.
Renewal Traps
Some providers push you to renew early or "stack" a second advance on top of the first. That's a different and much more dangerous game. This tool compares two separate initial offers only.
Expert Insights
Always compare on effective APR, never factor rate alone. I've watched business owners pick a 1.4 factor rate over a 1.25 because the first had a longer term -- and save $15,000+ in annualized cost.
Ask each provider for the total dollar cost in writing. If they can't or won't give you a straight number, walk away.
If both offers clock in above 60% APR, stop. Look at SBA microloans (6-8%), CDFI loans (8-15%), or invoice factoring (15-35%) before you accept either MCA. The cost difference is staggering.
Frequently Asked Questions
This calculator provides estimates for educational purposes only. Actual results depend on your specific business financials, lender terms, and market conditions. Consult a qualified financial advisor before making major business financing decisions.
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