What is a factor rate?

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.

How is the daily payment calculated?

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.

What factor rate should I expect?

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.

How accurate is this MCA calculator?

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.

Can I use this calculator before applying for an MCA?

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.

Does paying off an MCA early save money?

In most cases, no. MCA total repayment is fixed by the factor rate at the time of funding — paying early does not reduce the total amount owed unless your agreement specifically includes an early payoff discount clause. Always ask your funder whether early payoff reduces total cost before signing.

How is factor rate different from APR?

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.

Can I pay off an MCA early to save money?

In most cases, no. MCA total repayment is fixed by the factor rate — paying off early does not reduce the total amount owed unless your agreement specifically includes an early payoff discount clause. Some funders offer buyback discounts (e.g., 10–15% off remaining balance if paid within 90 days). Always ask your funder before signing whether early payoff reduces total cost.

What happens if my revenue drops during MCA repayment?

It depends on the MCA repayment structure. Traditional MCAs use a fixed daily ACH debit — the same amount is pulled every business day regardless of revenue. A 'flex' or 'true split' MCA deducts a fixed percentage of daily deposits, so payments automatically drop when revenue drops. Most standard MCAs use fixed daily debits. Ask your funder which structure applies before signing, and factor this into your cash flow planning.

Is the effective APR shown on the MCA calculator accurate?

Yes — the calculator solves for the Internal Rate of Return (IRR) of the actual daily payment stream, not a simple cost-over-principal approximation. Because an MCA is not a loan, it is not technically subject to APR disclosure requirements, but the IRR method is the same math used to price amortizing loans and is the most defensible way to compare MCA cost to a bank loan's APR. For example, a $50,000 advance at a 1.30 factor rate ($65,000 total, $515.87/day over 126 business days) has an IRR-based effective APR of approximately 109.3% — a simple cost/principal/term approximation would understate this at roughly 60%, because it ignores that the outstanding balance shrinks with every daily payment.

How much can a business borrow with a merchant cash advance?

Most businesses can qualify for 75%–150% of their average monthly deposits. A business depositing $30,000/month qualifies for approximately $22,500–$45,000. A business depositing $100,000/month qualifies for $75,000–$150,000. Advance amounts range from $5,000 to $2 million through T.A.G.'s funding network. The multiplier depends on time in business, credit score, industry, and existing debt positions.

What is a holdback rate on a merchant cash advance?

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.

MCA Calculator: Factor Rate & APR Estimator

Your Advance Details

Advance Amount

$10K$500K

Factor Rate

1.101.50

1.30

Typical range: 1.10 (strongest profiles) to 1.50 (higher risk). Most approved deals: 1.20–1.35.

Estimated Payoff Term

MCA terms are estimates based on revenue. Actual payoff depends on daily sales volume.

Payment Frequency

Payment Summary

Advance Amount $50,000

Factor Rate 1.30

Total Repayment $65,000

Cost of Capital $15,000

Daily Payment $500

Est. Payoff Term ~6 months

Payoff Multiplier 1.30×

Apply for This Amount →

Saved Scenarios

Scenario	Advance	Rate	Total Repay	Cost	Daily Pmt

Up to 3 scenarios can be compared. Click the × to remove a scenario.

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

Best profiles (preferred industry, 2+ yrs)1.10–1.20

Strong profiles1.20–1.30

Standard profiles1.30–1.40

Higher-risk profiles1.40–1.50

MCA Payment Reference: Common Advance Scenarios

Common advance amounts at two typical factor rates. Use these as benchmarks before entering your specific numbers above.

MCA repayment estimates — factor rates 1.25 and 1.35, 6-month term (130 business days).
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

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.
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.
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.
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.
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.

Embed This Calculator on Your Website

Add this free MCA calculator to any website with one line of code. Works on WordPress, Squarespace, Wix, or any HTML site. Free to use — no account required.

Embed Code — Paste into any page

<iframe
  src="https://funding.towersassetgroup.com/embed/mca-calculator"
  width="100%"
  height="460"
  frameborder="0"
  style="border-radius:12px;border:1px solid #e5e7eb;box-shadow:0 2px 12px rgba(0,0,0,.08);max-width:480px;"
  title="MCA Calculator — T.A.G. Business Funding"></iframe>

Live Preview

Free to Use

No account, no API key, no monthly fee. Copy the code and paste it anywhere.

Always Current

The calculator is hosted by TAG and updates automatically. Nothing to maintain on your end.

Works Anywhere

Compatible with WordPress, Squarespace, Wix, Webflow, Kajabi, and any HTML page that allows iframes.

Ready to get the real numbers?

Apply and receive an actual offer — with real factor rate, actual repayment, and real daily payment — in 24–48 hours.

Apply for Funding →

MCA Calculator — Merchant Cash Advance Calculator