Free MCA Tool

MCA Payoff Calculator

Find out what your MCA actually costs and how long you'll be paying it off.

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What Is the MCA Payoff Calculator?

MCA pricing is deliberately confusing. Instead of quoting an APR like a normal loan, MCA providers use factor rates -- a flat multiplier on your funded amount. A 1.3 factor rate on $50,000 means you owe $65,000 back, no matter how fast you repay. This calculator cuts through that fog. Plug in your factor rate, holdback percentage, and daily revenue to see the daily payment, total repayment, payoff timeline, and -- most importantly -- the effective APR. That lets you compare an MCA against a term loan or credit line on equal terms. Business owners are consistently shocked to learn that a "modest" 1.3 factor rate translates to 80%+ APR when the advance is repaid in a few months. Run these numbers before you sign anything.

How to Use This Calculator

1

Enter Your Funded Amount

Put in the cash the MCA provider is giving you -- the amount that hits your account, not what you owe back.

2

Set the Factor Rate

Grab the factor rate from your MCA offer. It'll be somewhere between 1.1 and 1.5. This single number controls your total repayment.

3

Input Your Holdback Percentage

This is the slice of your daily credit card or bank receipts the MCA provider takes automatically. Most holdbacks run 10% to 20%.

4

Enter Your Average Daily Revenue

Use your real daily revenue from credit card receipts or bank deposits. Pull three months of statements to get an honest average.

5

Review the Results

Look at the effective APR first. If it's above 50%, seriously consider SBA loans, credit lines, or revenue-based financing before going ahead with this MCA.

Key Concepts

Factor Rate

A flat multiplier (like 1.3) on your funded amount. Multiply what you borrowed by this number and that's what you owe. Unlike interest rates, paying faster doesn't save you a dime -- the total stays the same.

Holdback Percentage

The chunk of your daily revenue the MCA provider pulls out automatically. A higher holdback means you pay off faster, but it also chokes your daily cash flow.

Effective APR

What the MCA really costs when you express it as an annual rate. Since MCAs get repaid in months, not years, the APR is wildly higher than the factor rate suggests. A 1.3 factor rate over 6 months? That's roughly 79% APR.

Payoff Timeline

How many business days until you're done paying. It shifts with your revenue -- slow months drag it out, busy months speed it up. Plan for the slow months.

Reconciliation Rights

Some MCA contracts let you request a holdback adjustment when revenue tanks. Not all do. Read the fine print for reconciliation clauses before you sign.

Expert Insights

A 1.3 factor rate on a 6-month advance works out to about 79% APR. Shorten that to 4 months and the same rate hits roughly 119% APR. The faster you repay, the more brutal the true cost. Always convert to APR before you compare anything.

If your holdback is eating more than 15% of daily revenue, one slow week could put you in a cash crisis. Stack at least two weeks of operating expenses as a cushion before taking an MCA.

Push back on the holdback percentage, not the factor rate. Most brokers have wiggle room on holdback even when the factor rate is locked. A lower holdback stretches your repayment out but keeps your business breathing.

Frequently Asked Questions

Not even close. An interest rate is annualized and drops as you pay down principal. A factor rate is a flat multiplier on what you originally borrowed -- you owe the same total whether you pay it off in 3 months or 12. That's exactly why converting to APR is the only way to compare.
Almost never. Most MCA contracts lock you into the full purchased amount (funded amount times factor rate) no matter how fast you pay. A few newer providers offer small early-payoff discounts, but don't count on it.
Depends on your MCA structure. With a percentage holdback, your daily payment shrinks when revenue dips, but the payoff stretches longer. With a fixed daily ACH payment, the amount stays the same no matter what -- and that can wreck your cash flow in a slow month.
Because it makes the cost look smaller. "1.25 factor rate" sounds way better than "85% APR." MCA providers also hide behind the argument that advances aren't technically loans, so Truth in Lending APR disclosure doesn't apply. That said, California, New York, and Virginia now force APR disclosure on commercial financing.
Most fall between 1.1 and 1.5. Strong businesses with solid revenue history get 1.1-1.2. Newer businesses, thinner revenue, or a history of MCA defaults? Expect 1.3-1.5 or worse.

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.

Run These Numbers Too

MCA Offer Comparison Calculator

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MCA Refinance Calculator

Find out if refinancing your MCA into a new advance with better terms actually saves money.

MCA Stacking Risk Calculator

Find out how much of your daily revenue is going to MCA holdbacks -- and whether you are in the danger zone.

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