Free Broker Tool

RTR Calculator

Calculate total Revenue to Receive, daily payment, and repayment timeline for any MCA deal.

100% Free
No Sign-Up Required
Instant Results

What Is RTR in MCA?

RTR stands for Revenue to Receive (sometimes called Receivable Amount or Total Payback). It is the total amount the funder will collect from the merchant over the life of the advance. RTR equals the funded amount multiplied by the factor rate. On a $100,000 advance at a 1.32 factor rate, the RTR is $132,000 -- meaning the merchant repays $132,000 total, and the cost of capital is $32,000. RTR is the single most important number for the merchant to understand because it represents their actual total obligation. For the broker, RTR determines the funder's gross revenue on the deal, the pool from which commissions and residuals are paid, and the amount at risk in a default scenario. Every MCA conversation should include a clear explanation of RTR.

How to Use This Calculator

1

Enter the funded amount

This is the net amount the merchant receives after any origination fees or holdbacks. Not the gross approval amount.

2

Enter the factor rate

The factor rate from the funder's offer sheet. This is the sell rate (what the merchant pays), not the buy rate (what the funder quotes you).

3

Review the cost breakdown

The calculator shows total RTR, cost of capital, and daily payment estimates at different term lengths. Use the cost per dollar metric to compare deals from different funders.

Key Concepts

RTR

Revenue to Receive. The total amount collected from the merchant. RTR = Funded Amount x Factor Rate. This is the gross collection amount before the funder's costs.

Cost of Capital

The difference between RTR and funded amount. On a $100K deal with $132K RTR, the cost of capital is $32K. This is what the merchant pays for access to the funds.

Cost Per Dollar

The factor rate minus 1, expressed in cents. A 1.32 factor rate means 32 cents per dollar borrowed. This is the simplest way to communicate cost to merchants.

Expert Insights

RTR Transparency Builds Trust: Many merchants do not understand factor rates intuitively. Telling someone "the factor rate is 1.32" means nothing to most business owners. Telling them "you borrow $100,000 and pay back $132,000 over 8 months, costing you $32,000" is immediately understandable. Leading with RTR transparency builds trust and reduces buyer remorse, which leads to smoother repayment and higher renewal rates.

Comparing RTR Across Offers: When presenting multiple funder offers, normalize them by cost per dollar and daily payment. A $100K deal at 1.28 with a 6-month term has the same RTR ($128K) as a $100K deal at 1.28 with a 10-month term -- but the daily payments are dramatically different ($970/day vs. $582/day). Same cost, very different cash flow impact. Always present both dimensions.

Frequently Asked Questions

Indirectly. The funded amount and factor rate determine RTR. You can negotiate the factor rate (sell rate) down, which lowers RTR. You cannot negotiate RTR independently -- it is a calculated output, not an input. A lower buy rate from the funder gives you room to reduce the sell rate while maintaining your spread.
The full RTR remains owed regardless of default. The funder will pursue collection of the remaining balance. For the merchant, default does not eliminate the RTR obligation -- it triggers collection activity, potential COJ (Confession of Judgment) enforcement in some states, and UCC lien enforcement.
MCA RTR is typically higher than equivalent traditional loan repayment because MCA factor rates translate to higher APR equivalents. However, MCA approval is faster (days vs. weeks), requires less documentation, and does not require collateral. The premium is the price of speed, accessibility, and flexibility.

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.

Need Help With Business Debt?

Speak with a Delancey Street specialist — free consultation, no obligation.

Get Free Consultation