MCA Refinance Calculator
Find out if refinancing your MCA into a new advance with better terms actually saves money.
What Is the MCA Refinance Calculator?
MCA refinancing swaps your current advance for a new one with (hopefully) better terms -- lower factor rate, smaller holdback, or more time. This calculator compares your current daily payment and remaining cost against the new offer. Here's what most business owners miss: MCA contracts usually require full repayment of the purchased amount regardless of how much you've already paid. So "refinancing" means the new provider pays off your entire remaining obligation, then gives you a new advance. The net cash you actually receive is often a fraction of the new funded amount because the old payoff eats most of it. This calculator cuts through that confusion and tells you whether the refinance actually saves money.
How to Use This Calculator
Enter Current MCA Details
What you still owe on your current MCA, the original factor rate, and roughly how many days are left at your current payment pace.
Enter New MCA Offer Details
The factor rate and repayment term (in days) from the refinance offer you're considering.
Compare Daily and Total Cost
Look at the daily payment change and total cost difference. Make sure the savings are real after all costs -- not just a lower factor rate on paper.
Verify Payoff Terms
Call your current MCA provider and get the exact payoff amount in writing. Some let you pay the current balance; others demand the full purchased amount. This number changes everything.
Key Concepts
Full Payoff Requirement
Most MCAs make you pay the full purchased amount (funded x factor rate) no matter how far along you are. Refinancing on day 60 of a 180-day advance? You still owe the full cost. No proration.
Net Proceeds
The new MCA pays off the old one. What's left over is your net. Old payoff is $40K and new advance is $50K? You only see $10K in new capital. The rest just went to paying off the old deal.
Stacking vs. Refinancing
Stacking = two MCAs running at once, two holdbacks hitting your account daily. Refinancing = pay off the first, replace it with one new advance. Refinancing is almost always better unless you need capital beyond what the refinance provides.
Diminishing Returns
Every refinance layers on cost. Your first MCA had a 1.3 factor rate. The refinance at 1.25 sounds better, but it's applied to a bigger balance (old payoff + new capital). Always run the full math.
Expert Insights
Refinancing only works if the new MCA's total cost (on the payoff amount plus new capital) is actually less than finishing the current one. I've seen owners grab a "lower factor rate" and end up paying more because the payoff balance was bigger than they expected.
The sweet spot for refinancing: you're early in the current MCA (under 30% repaid), your factor rate is above 1.35, and the new offer is below 1.2 with a longer term. Outside those parameters, the savings are usually too thin to bother.
Don't refinance through the same broker who placed the original MCA. They earn commission on both deals and have zero incentive to find you the best terms. Get quotes from at least two other providers.
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 Payoff Calculator
Find out what your MCA actually costs and how long you'll be paying it off.
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 Stacking Risk Calculator
Find out how much of your daily revenue is going to MCA holdbacks -- and whether you are in the danger zone.
Find Better MCA Refinance Options
Compare refinance offers and alternatives to reduce your MCA cost.
Compare Refinance Options