BizLeaseCheck

MCA & Factor Rate Calculator

See the true cost of a merchant cash advance. Convert a factor rate into total payback, cost per dollar, and an estimated annualized cost.

Tip: If you're reviewing a funding contract, see our business loan agreement review to surface hidden fees and confession-of-judgment clauses.

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How to use this MCA calculator

  1. Enter the advance amount the funder is offering you.
  2. Enter the factor rate from the offer (e.g., 1.40).
  3. Estimate how many months it will take to repay the full fixed amount.
  4. Read the total payback, total cost, cost per $1 borrowed, and estimated annualized cost.

For the most reliable picture, ask the funder for the total repayment amount, the daily or weekly debit, and any origination or servicing fees in writing.

MCA cost red-flag checklist

  • Factor rate: What is the flat multiplier, and what total dollar payback does it produce?
  • Repayment frequency: Are debits daily or weekly? Faster debits raise the effective APR.
  • Extra fees: Are there origination, underwriting, or ACH fees on top of the factor rate?
  • Confession of judgment: Does the contract include a COJ or personal guaranty?
  • Stacking & prepayment: Is there any discount for early payoff, or penalties for taking another advance?

Not sure whether to DIY or hire counsel? Read Attorney vs. AI for MCA review.

MCA & factor rate FAQs

BizLeaseCheck provides informational analysis and educational tools and is not financial or legal advice. Always confirm figures with the funder's official disclosures.