MCA Funding Calculator

Factor rates are the defining feature that separates merchant cash advances from traditional business loans. A factor rate of 1.30 means you repay $1.30 for every $1.00 borrowed — so a $50,000 advance becomes $65,000 in total repayment. This is fundamentally different from a 30% interest rate, which would compound over time. Because factor rates are fixed, your total cost is known upfront, but the effective APR can range from 40% to over 350% depending on how quickly you repay. Our calculator helps you see the true cost so there are no surprises.

MCA funders typically advance between 50% to 150% of your average monthly revenue. If your business deposits $40,000 per month, you might qualify for $20,000 to $60,000 in funding. The exact amount depends on factors including your time in business, industry type, daily bank balance consistency, and whether you have existing MCA positions. First-position advances (no existing MCAs) generally receive better terms than second or third positions.

Most merchant cash advances are repaid through daily ACH debits from your business bank account, though some funders offer weekly payment schedules. Daily payments typically range from 1/252 to 1/126 of the total payback amount (based on business days in 6-12 months). Understanding whether your daily cash flow can support these payments is critical — our calculator breaks down the exact daily, weekly, and monthly impact so you can see if the advance is affordable before you commit.

Merchant cash advances work best for businesses that need fast capital (often funded in 24-48 hours), have strong daily revenue but may not qualify for traditional bank financing, or need to capitalize on a time-sensitive opportunity where the return on investment exceeds the cost of capital. Common use cases include inventory purchases during peak seasons, equipment repairs, emergency expenses, marketing campaigns, and payroll bridging. The key is ensuring the funded amount generates more revenue than the total repayment cost.