Merchant Cash Advance (MCA) Calculator
Merchant Maverick’s MCA Calculator can be used to estimate merchant cash advance repayment metrics to understand the cost of borrowing and easily compare offers. Use this tool to estimate daily repayments, cents on the dollar costs (the amount you pay in fees per dollar borrowed), rough APR, and approximate days to repay.
How To Use The MCA Calculator
Input the following numbers into the cash advance calculator:
- Amount Advanced: The amount received from the MCA company. This number is expressed as a dollar amount.
- Payback Amount OR Factor Rate (choose one based on the information you have; both will return the same results)
- Payback Amount: The total amount you have to repay to the MCA company. This number is expressed as a dollar amount.
- Factor Rate: The multiplier used to determine the payback amount. This number must be written as a decimal (such as “1.12”), not as a percentage.
- Administrative Cost: The fees deducted from the advanced amount before the MCA company sends the money to you. These fees can be called many names, including origination fees, administrative fees, or closing fees. Some companies do not charge any administrative costs. This number is expressed as a dollar amount.
- Monthly Credit Card Sales: Your average credit card sales per month. This number is expressed as a dollar amount.
- Percentage Of Sales Withheld: The amount the MCA company is going to withhold from your daily sales. This number is expressed as a percentage.
Interpreting Your Results
It’s vital to have a good understanding of the results you get from your calculations, especially because merchant cash advances operate so differently from traditional loans. You’ll want the best information possible when comparing options so that you don’t get scammed.
Use the guide below to interpret your results:
- Approximate Daily Repayment: About how much you’ll have to pay per day. In actuality, this number will fluctuate along with your daily sales, but this estimate can give you an idea of approximately how much you’re looking at paying every day.
- Approximate Days To Repay: About how many days it will take you to repay. This number is assuming your sales remain consistent; if your sales significantly rise or fall before you repay, the number will change.
- Effective APR: The approximated Annual Percentage Rate (APR) on the advance. See our article on Merchant Cash Advances and APRs for more information on how to evaluate MCAs using APRs.
- Financing Cost: The amount you have to pay in fees for borrowing. This number is inclusive of the fixed fee (the fee determined by the factor rate) and the administrative cost.
- Total Repayment: The total amount you have to repay. This number is inclusive of the advanced amount, the fixed fee, and administrative costs.
- Cents On The Dollar: The amount you pay in fees per dollar borrowed.
Evaluating & Comparing Cash Advance Offers
The above merchant cash advance calculator outputs will give you all the information you need to make informed decisions when evaluating and comparing advance offers, including how much you’ll pay each day, the approximate term length, the true rate of borrowing, and the total cost of financing.