Stacking Analysis Calculator
Analyze the risk and capacity for stacking additional MCA positions on an existing merchant.
What Is MCA Stacking?
Stacking is the practice of placing multiple MCA positions on a single merchant simultaneously. Each position has its own daily payment obligation, and the merchant must generate enough revenue to cover all of them plus operating expenses. Stacking is common -- many merchants carry 2-4 positions -- but risk escalates with each additional position. A merchant committing 15% of daily revenue to MCA payments is in safe territory. At 25-30%, stress begins to show in bank statements (increased NSFs, declining balances). Above 35%, default probability spikes dramatically. Plug in the numbers to see whether the merchant can actually handle another position. This is the single most important analysis you run before submitting a stacked deal.
How to Use This Calculator
Enter the merchant's average daily revenue
Calculate from the last 3 months of bank statements. Divide total deposits by business days (approximately 22 per month). Exclude non-revenue deposits.
Enter each existing position
List the remaining balance (RTR) and daily payment for each existing MCA position. If the merchant has fewer than 3 positions, leave unused fields at zero.
Review the risk assessment
The calculator shows what percentage of daily revenue is already committed. Below 20% is green (safe to stack). 20-30% is yellow (proceed with caution). Above 30% is red (high default risk, most funders will decline).
Key Concepts
Position
An individual MCA advance with its own RTR, daily payment, and funder. First position has priority in collections. Second, third, and subsequent positions carry increasing risk.
Revenue Commitment Ratio
Total daily MCA payments divided by daily revenue. The single most important metric for stacking decisions. Industry consensus: under 20% is safe, 20-30% is moderate risk, over 30% is high risk.
Position Priority
In a default scenario, first position typically has priority in any recovery. Later positions have higher loss-given-default rates, which is why stacking funders charge higher factor rates.
Expert Insights
The Stacking Death Spiral: When a merchant stacks aggressively, each new position raises the daily burden, which reduces cash reserves, which leads to NSFs, which leads to the need for another advance to cover the shortfall. This spiral ends in default on all positions. As the broker, you earn commission on each stacked deal but face clawbacks on all of them when the spiral collapses. The short-term gain of stacking often results in a net loss. Be the broker who says "you are maxed out" when the numbers warrant it.
When Stacking Makes Sense: Stacking is not inherently bad. A merchant doing $200K/month with a $300 daily obligation on a first position (under 10% commitment) has plenty of capacity for a second position. The key is that total commitment stays under 20-25%. Stacking also makes sense when the merchant has a specific high-ROI use for the capital -- inventory purchase for a seasonal surge, equipment that increases capacity, or a time-limited business opportunity.
Frequently Asked Questions
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.
Run These Numbers Too
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Estimate the maximum MCA funding amount based on merchant revenue, time in business, and industry.
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Model merchant cash flow after MCA payments to verify deal sustainability.
UCC Lien Impact Calculator
Assess how existing UCC filings affect new MCA funding options, rates, and position priority.
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