Merchant Cash Advance Calculator
Estimate your repayment amount, advance fees, and effective cost for a Merchant Cash Advance based on your business's revenue and terms.
Calculate Your Merchant Cash Advance
What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a financing option where businesses receive an upfront lump sum in exchange for a portion of their future revenue.
Key Components of MCA
- Advance Amount: The amount borrowed upfront.
- Factor Rate: Determines the total repayment (e.g., 1.2 means you repay 1.2 times the advance).
- Holdback Percentage: The percentage of daily sales used to repay the advance.
Example Calculation
Assume you borrow ₹1,00,000 with a factor rate of 1.3, a holdback percentage of 10%, and a monthly revenue of ₹3,00,000:
- Total Repayment: ₹1,00,000 × 1.3 = ₹1,30,000
- Daily Payment: (₹3,00,000 × 10%) ÷ 30 = ₹1,000
- Repayment Duration: ₹1,30,000 ÷ ₹1,000 = 130 days