MCA Payoff Calculator
Find out what your MCA actually costs and how long you'll be paying it off.
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
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.
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.
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%.
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.
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
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
Put two MCA offers next to each other and see which one actually costs less.
Factor Rate to APR Converter
Turn any MCA factor rate into a real APR so you can see what you're actually paying.
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.
Explore Better Financing Options
Compare MCA alternatives including SBA loans, lines of credit, and revenue-based financing.
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The average 401(k) balance hit $118,600 in 2025, though the median is much lower at $35,286.
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SBA loans offer the lowest rates for small businesses (typically 6-9%), but approval takes 30-90 days.
Over 60 million Americans are "credit invisible" or have thin credit files that make conventional lending difficult.