Purchased amount and payback
Confirm the amount received, purchased receivables, total payback, and any separate fees.
MCA Factor Rate Calculator
Factor rate is not APR. Understand the payback before comparing offers.
A factor rate is commonly used to describe the contracted total payback on a merchant cash advance. It can be useful for estimating obligations, but it does not tell the whole cost story by itself.
Open the MCA Calculator →Illustrative factor-rate calculation
| Input | Example |
|---|---|
| Advance amount | $40,000 |
| Factor rate | 1.35 |
| Illustrative payback | $54,000 |
This example is mathematical only. Actual contracts may include origination fees, ACH amounts, reconciliation terms, personal guarantees, UCC filings, or other provisions.
Do not compare an MCA factor rate directly to APR without professional guidance. The repayment timing, payment structure, and treatment of receivables differ from a conventional loan.
What to review in the contract
Payment frequency
Daily withdrawals can create different cash-flow pressure than weekly or percentage-of-receivables terms.
Reconciliation language
Understand whether and how payments may be adjusted if revenue changes. A qualified attorney can explain enforceability.
Need help understanding the payment pressure?
Use the calculator as an organizing tool, then gather your contracts and speak with an appropriately qualified professional before making a decision.
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