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Saved Scenarios
| Scenario | Advance | Rate | Total Repay | Cost | Daily Pmt |
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Up to 3 scenarios can be compared. Click the × to remove a scenario.
Before You Apply: Does This Number Actually Work for Your Business?
The calculator above tells you the cost. It can't tell you whether your business can absorb it. These five questions can, so answer them honestly before you submit an application.
1. Can my normal operating cash flow absorb the daily/weekly remittance shown above?
Look at your last few months of bank statements. On your worst week, not your average week, would the payment shown above have still cleared without an overdraft? If the answer is no on a bad week, the advance amount may be too large for your current cash-flow rhythm, even if the total cost looks acceptable.
2. What happens if revenue drops 20% next month?
Most standard MCAs use a fixed daily ACH debit: it does not automatically shrink if a slow month hits (see "What happens if my revenue drops?" in the FAQ below). Recalculate the payment above against a revenue figure 20% lower than your current average and ask whether that fixed payment still fits.
3. What happens if a major customer pays late?
If more than 20-30% of your revenue comes from one or two customers, a single late payment can collide with the daily debit above. Know which customers you're relying on to make this payment schedule work, and what your plan is if one of them slips.
4. Does the opportunity this capital funds still make sense after the cost shown above?
If you're funding inventory, a contract, or equipment that will generate more than the "Cost of Capital" figure above, the math works in your favor. If the capital is covering a shortfall rather than funding growth, the advance adds a new fixed obligation without a matching new revenue source; worth separating those two situations clearly before applying.
5. Is an MCA even the right product for this need?
If you have unused availability on a business line of credit, or strong outstanding invoices from creditworthy customers, those may cost less than the factor rate shown above. MCA's real advantage is speed and revenue-based qualification, not lowest cost. See the unsecured business loans guide for a fuller product comparison before deciding.
Understanding MCA Costs
Factor Rate vs. Interest Rate
A factor rate (1.10-1.50) is NOT an annual interest rate. It is a flat multiplier applied to the advance amount. A 1.30 factor rate means you repay 1.30× the amount you received, regardless of how quickly you pay it off.
Why Daily Payments?
MCA repayment is typically deducted from your business bank account each business day. The small daily amount (rather than one monthly payment) is designed to align with daily business cash flow and reduce the impact on operations.
What Determines Your Factor Rate?
Key factors: revenue consistency, time in business, industry type, existing advance balance, and advance size relative to monthly revenue. Stronger profiles receive lower factor rates.
Typical Factor Rate Ranges
MCA Payment Reference: Common Advance Scenarios
Common advance amounts at two typical factor rates. Use these as benchmarks before entering your specific numbers above.
| Advance Amount | Factor 1.25: Total | Factor 1.25: Daily | Factor 1.35: Total | Factor 1.35: Daily |
|---|---|---|---|---|
| $20,000 | $25,000 | ~$192/day | $27,000 | ~$208/day |
| $50,000 | $62,500 | ~$481/day | $67,500 | ~$519/day |
| $100,000 | $125,000 | ~$962/day | $135,000 | ~$1,038/day |
| $150,000 | $187,500 | ~$1,442/day | $202,500 | ~$1,558/day |
| $250,000 | $312,500 | ~$2,404/day | $337,500 | ~$2,596/day |
Daily payments calculated at 130 business days (6-month term). Actual daily payment varies with payoff term selected. Use the calculator above for your specific scenario.
Calculator FAQ
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Unlike traditional loans, most MCAs use a fixed total repayment amount determined by the factor rate. Paying off early may not reduce your total cost unless your agreement includes an early payoff discount. Always confirm the payoff structure with your funder before accepting an offer. Before signing, read how to read an MCA contract so you know exactly what the holdback percentage, daily debit amount, and any stacking or confession-of-judgment clauses actually mean for your cash flow.
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Traditional MCAs with a fixed daily ACH debit continue pulling the same daily amount regardless of revenue. Some funders offer a "flex" or "true split" structure where payments are a percentage of daily deposits; these automatically adjust when revenue drops. This calculator uses the fixed daily payment model, which is most common. Ask your funder which structure applies to your offer.
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Yes, this calculator solves for the Internal Rate of Return (IRR) of the actual daily payment stream, the same math used to price amortizing loans, rather than a simple cost-over-principal approximation that understates true cost. Example: a $50,000 advance at a 1.30 factor rate ($65,000 total, $515.87/day over 126 business days) works out to an IRR-based effective APR of approximately 109.3%; a naive approximation would show only ~60%, because it ignores that the outstanding balance shrinks with every daily payment.
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Most businesses qualify for 75%-150% of their average monthly deposits. A business depositing $30,000/month can typically access $22,500-$45,000. A business depositing $100,000/month can access $75,000-$150,000. Advance amounts through T.A.G.'s network range from $5,000 to $2 million. The multiplier depends on time in business, credit score, industry, and existing debt positions. Use the calculator above to estimate your daily payment for any advance amount in that range.
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The holdback rate (or retrieval rate) is the percentage of daily bank deposits automatically deducted as MCA repayment, typically 8%-20%. This calculator estimates your daily payment based on advance amount, factor rate, and payoff term. To cross-check: take your monthly deposits ÷ 22 business days = estimated daily deposits, then multiply by your holdback percentage. If the holdback calculation matches the daily payment shown, your revenue-to-advance ratio is well-calibrated. Ask your funder for the exact holdback rate before signing. For every other term used here (factor rate, purchase price, RTR, stacking) see the full MCA glossary.
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A factor rate is a decimal multiplier used to calculate the total repayment on a merchant cash advance. For example, a $50,000 advance at a 1.30 factor rate results in a total repayment of $65,000. Factor rates typically range from 1.10 to 1.50 and are determined by underwriting criteria including revenue consistency, time in business, and industry.
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The daily payment on an MCA is calculated by dividing the total repayment amount by the number of business days in the estimated term. For example, $65,000 repayment over 6 months (approximately 130 business days) results in a daily payment of approximately $500.
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Factor rates typically range from 1.10 to 1.50. Stronger business profiles (high revenue, clean bank statements, preferred industries) typically receive lower factor rates (1.10-1.25). Higher-risk profiles may receive rates of 1.30-1.50. The average for a qualified borrower is typically 1.20-1.35.
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The calculator shows estimated payments based on the factor rate and repayment term you enter. Actual holdback percentages and daily payment amounts vary by funder and are confirmed at funding. Use this tool for planning; actual terms appear in your final offer agreement before you sign.
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Yes, this calculator is designed for pre-application planning. Enter different advance amounts and factor rates to understand the total cost before you receive an offer. Actual terms from a funder may differ based on your revenue, industry, and FICO score.
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A factor rate is a flat multiplier (e.g., 1.30) applied to the advance amount to calculate total repayment. APR (Annual Percentage Rate) is an annualized cost that accounts for compounding and time. Because MCAs are not loans, lenders are not required to disclose APR. The same factor rate results in a much higher effective APR when paid off quickly (3 months) than when paid over 12 months, because the cost is the same but compressed into less time.
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The holdback rate (also called retrieval rate) is the percentage of daily bank deposits automatically deducted as repayment. Typical holdback rates range from 8% to 20%. A business with $30,000/month in deposits and a 10% holdback rate would have approximately $1,500/month deducted. The MCA calculator above shows estimated daily payment: divide monthly deposits by 22 business days to estimate the daily deposit volume, then multiply by your holdback rate to see expected daily repayment.
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