Merchant Cash Advance Calculator
Calculate your total repayment, daily holdback, payoff timeline, and approximate APR for any MCA advance. Enter your numbers to see the full picture before you commit.
MCA Calculator
Results
Total Repayment
$62,500
Cost of Capital
$12,500
Daily Holdback
$450
Weekly Holdback
$2,250
Est. Payoff
139d / 4.6mo
Approx. APR
65.7%
APR is approximate and based on estimated payoff timeline. Actual cost depends on funder terms, fees, and daily sales variations.
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Get Pre-Approved Free →Understanding MCA Factor Rates & Holdback
What Is a Factor Rate?
Unlike traditional loans that use an annual percentage rate (APR), a merchant cash advance uses a factor rate — a simple decimal multiplier applied to your advance amount. For example, a $50,000 advance with a 1.25 factor rate means you repay $62,500 total. The $12,500 difference is the cost of capital.
Factor rates typically range from 1.10 to 1.50, depending on your industry, revenue consistency, credit profile, and how long you've been in business. A 1.10 factor rate on a short-term advance may be very competitive, while a 1.50 rate on a longer payoff period is substantially more expensive.
What Is a Holdback?
The holdback (also called the retrieval rate) is the percentage of your daily sales that the MCA provider automatically collects as repayment. If your business generates $3,000 per day in card or bank transactions and your holdback is 15%, the provider takes $450 per day until the advance is repaid in full.
Holdback percentages typically range from 5% to 35%. A lower holdback means slower repayment (longer payoff period) but less daily impact on cash flow. A higher holdback means faster payoff but more significant daily deductions. Choosing the right holdback depends on your revenue consistency and cash flow needs.
MCA vs. Traditional Loan: Key Differences
| Feature | Merchant Cash Advance | Traditional Bank Loan |
|---|---|---|
| Pricing | Factor rate (e.g., 1.25) | APR (annual %) |
| Repayment | % of daily sales | Fixed monthly payment |
| Collateral | None required | Often required |
| Approval speed | Same day to 48 hours | Weeks to months |
| Credit requirement | Revenue-focused; bad credit OK | Usually 680+ credit score |
| Cost | Higher effective APR | Lower APR; more requirements |
Is an MCA Right for Your Business?
A merchant cash advance can be the right tool when you need capital quickly, have consistent daily revenue (especially card sales), and can't qualify for or wait on a traditional loan. The flexible repayment structure means you pay more when business is good and less when it's slow — which can be a meaningful advantage during seasonal fluctuations.
That said, MCAs carry a higher effective cost than long-term bank loans or SBA programs. Use this calculator to understand your true payoff timeline and approximate APR before committing. If you have good credit, 2+ years in business, and time to wait, an SBA loan or term loan will typically be less expensive. If you need funding this week and your revenue is strong, an MCA from a reputable funder — matched through a platform like OneDayCap — may be the fastest and most flexible path.