Discover the true cost of your Merchant Cash Advance (MCA) with our free online calculator. Easily estimate your total payback, cost of advance, daily payment, and payoff duration. Make informed financial decisions for your business funding needs.
Formula:
Key MCA Formulas:
- Total Payback Amount = Advance Amount × Factor Rate
- Total Cost of Advance = Total Payback Amount - Advance Amount
- Estimated Daily Payment = Estimated Daily Sales × (Holdback Percentage / 100)
- Estimated Payoff Time (Days) = Total Payback Amount / Estimated Daily Payment
Where:
- Advance Amount: The initial lump sum of cash your business receives.
- Factor Rate: A multiplier (e.g., 1.25) applied to the Advance Amount to determine the total repayment.
- Holdback Percentage: The percentage of your daily credit/debit card sales that is withheld by the MCA provider.
- Estimated Daily Sales: Your average daily credit/debit card revenue, used to project the repayment timeline.