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Merchant Cash Advance (MCA) Calculator

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Merchant cash advance qualifications

Fast Capital 360 looks at your overall business health — not just a credit score— to assess businesses. You’re likely to qualify if you meet the following minimum requirements.

Time in Business 4+ Months
Annual Revenue $100,000+
Credit Score 500+

Merchant Cash Advance Calculator: Find Your Borrowing Costs

Sometimes a short-term expense puts a small business owner in need of immediate cash. While a loan might seem like the obvious solution, the timing, terms and conditions aren’t always the best fit. 

But there is another financing option available that offers high approval rates: a merchant cash advance (MCA). In fact, according to the Federal Reserve Banks’ State of Small Business Credit report, 84% of firms that applied for MCAs were approved. 

If you’re considering this form of financing, start with our MCA calculator. By plugging a few numbers into this easy-to-use tool, you’ll come away with a better understanding of what your repayments might look like on a daily or weekly basis.

  • What Is a Merchant Cash Advance?


    An MCA is not a loan, but an advance. When you enter into an agreement with an MCA lender, you receive a sum of cash in exchange for a percentage of your future sales.

    Learn more about merchant cash advances

Merchant Cash Advance Fee Structure

The fee and repayment structures of MCAs are different from conventional forms of financing.

Merchant cash advance fees are calculated using a factor rate. Because factor rates aren’t used in consumer lending, many business owners are less familiar with this fee structure and how it’s calculated. 

Factor rates are expressed as a decimal figure rather than a percentage, and typically range from 1.10 to 1.30. A factor rate is used to calculate the MCA fee, which is a percentage of the original advance amount, not a fee based on depreciating principal. For this reason, the cost of MCA financing remains the same, whether you pay off an advance in 3 months or 6.

  • How to Calculate MCA Factor Fees


    Say you get a $20,000 cash advance at a 1.20 factor rate. To determine how much you will pay back to the MCA provider, multiply the cash advance amount by the factor rate.

    In this instance, the calculation would be: $20,000 X 1.20 = $26,000
    You would pay $26,000 to the MCA provider for borrowing $20,000. That means the cost of the advance is $6,000.

Related: Short-Term Loans: Why APR Is the Wrong Metric

Use the Merchant Cash Advance Calculator to Estimate Payments

Now that we’ve provided background for the MCA online calculator, here’s how to get the most out of the tool. (Before you get started, it’s important to note that this calculator is for merchant cash advance ACH transactions only.)

    • Step 1: Enter the desired advance amount into the MCA fee calculator.
    • Step 2: Enter the estimated factor rate. These rates typically fall within the 1.10 to 1.30 range.
    • Step 3: Select the estimated term in the MCA fee calculator. Terms may be as short as 3 months and as long as 24 months.
    • Step 4: The ACH merchant cash advance calculator will output the estimated remittance payment. You can toggle between a daily or weekly frequency, though daily remittances are common.

We encourage you to experiment with different advance amounts, factor rates, terms and remittance frequencies using the MCA online calculator. This way, you have a full understanding of the potential cost of funding — and what your cash flow can and cannot bear.

  • Example Using an MCA Calculator


    Let’s say you’re seeking a $10,000 advance. You estimate a factor rate of 1.15 and a term of 6 months. If you were to enter these terms into our merchant cash advance calculator, you’d see you’d owe $91 a day. If your terms were weekly, you’d be responsible for $456 each week. 

Additional Fees to Consider When Using an MCA Calculator

In addition to the factor rate you’ll be charged, consider any one-time merchant cash advance fees a financing provider might require. These are typically not included in an MCA calculator and vary by lender.

For example, there’s typically an upfront fee due at funding. These fees vary based on specific variables, such as the advance amount, factor rate and term. Additionally, the upfront cost could be a percentage of the loan or a flat fee. 

Other less common fees, such as for missed payments, could also apply.

Weighing Financing Options with a Merchant Cash Advance Calculator

As you consider your opportunities, a merchant cash advance interest calculator is a great place to start. By gaining an understanding of your estimated payments and the total cost of borrowing, you can easily compare financing offers, calculate fees and make an informed funding decision.

Ultimately, the right financing option for your small business will depend on your unique needs and your qualifications. If you need fast access to capital and your credit has seen better days, a merchant cash advance may be the right funding option for you.

Get started now. Have working capital today.

Answer a few basic questions about your business and you. You’ll receive a financing decision within hours and funds as fast as the same day.

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