TOOLS

MCA Loan ^Calculator

An MCA Loan Calculator provides businesses with a quick estimate of the cost associated with a merchant cash advance. It is especially useful for merchants who rely on card sales and want to understand repayment impacts before applying. While the calculator gives an initial overview, many businesses still turn to a platform or broker like Funding Agent to obtain detailed quotes and confirm figures. For more details on merchant cash advances, please see cash advance and MCA loans.

Secure up to £500,000 in Business Finance with Funding Agent.

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Quick and easy application process
Loan disbursed within 24 hours
No additional charges for early repayment

How To Use The MCA Loan Calculator

Enter core figures

Input the advance amount you require, the factor rate quoted by providers, your average monthly card takings, and the agreed holdback percentage. Each value has a specific role in determining your repayments. Understanding merchant cash advance terms can help; see what is an MCA loan to learn more.

Review repayment outputs

The calculator displays the total amount to repay, expected daily or weekly deductions, and the estimated repayment term based on your card sales volumes. This step helps evaluate whether the repayment terms fit your cash flow. For broader financing options and calculators, refer to calculators and financing options.

Stress-test scenarios

Adjust your card sales assumptions up or down to see how changes affect the repayment period. This helps prepare for slower or faster trading months and ensures affordability. Using such what-if tests is essential in cash flow planning; find out more at cash flow.

^Benefits of Using the MCA Loan Calculator

The MCA Loan Calculator is a vital tool for businesses seeking working capital through Merchant Cash Advances. By inputting financial information, users can quickly estimate daily paybacks and understand the cost of borrowing. This transparency helps businesses plan their finances more effectively and make informed decisions about cash flow and funding options.

Running quick what-if analyses before applying lets you better gauge your future cash flow and understand different repayment outcomes. It also assists in comparing offers more accurately on a like-for-like basis while preparing clear evidence for lenders, which can reduce delays in approval. For further help in planning your finances, explore cash flow and business loans.

Quick cash insight

Compare repayment scenarios

Plan cashflow confidently

Apply for your advance

Generate offers

How Merchant Cash Advance Cost is Calculated

Total Payback Amount

Advance multiplied by factor rate.

Total Payback Amount

The total payback amount (TP) is calculated by multiplying the advance amount (A) by the factor rate (F). For example, if you borrow £50,000 and the factor rate is 1.25, the total payback is £50,000 × 1.25 = £62,500. The factor rate, typically ranging between 1.1 and 1.5, includes the lender's fees and costs instead of traditional interest.

Daily Withhold Amount

Holdback percentage of card sales.

Daily Withhold Amount

The daily withhold amount (DW) is how much money is withheld from your card sales each day. It is calculated by multiplying your daily card sales (CS) by the holdback percentage (H). For example, if your card sales are £3,000 and the holdback is 12%, daily withhold is £3,000 × 0.12 = £360. This is deducted from your sales until you repay the total payback.

Estimated Repayment Term

Total payback divided by daily withhold.

Estimated Repayment Term

The estimated repayment term (RD) is found by dividing the total payback (TP) by the daily withhold amount (DW). Using the previous numbers: £62,500 ÷ £360 ≈ 174 days. This estimate helps in planning; convert days to weeks or months for easier understanding. Note that fluctuations in sales will affect this period.

Understanding Your MCA Loan Calculator Results

Compare total cost

Look beyond the advance amount and focus on the total payback. A higher factor rate means paying more overall, even if the holdback percentage remains constant. Understanding this helps in comparing offers fairly; see MCA loans.

See sensitivity to sales

Note how changes in your card sales directly impact repayment speed and total cost. Higher sales mean faster repayment and potentially lower effective daily costs, while lower sales extend the term. It is wise to test multiple sales scenarios before committing. For guidance, visit cash flow.

Note embedded charges

Factor rates include fees upfront, but additional charges like origination fees or late payment penalties may apply. The calculator assumes fees are included only in the factor rate. Always review lender terms carefully to understand all costs involved.