MCA Underwriter
Free tool

Average daily balance calculator

Enter each end-of-day balance and how long it was held; get the day-weighted average daily balance an MCA underwriter actually reads. Free, no signup.

End-of-day balance segmentsBalance · days held
Average daily balance
$6,260.00
Days counted
30

ADB = (Σ balance × days held) ÷ total days = $187,800.00 ÷ 30. Enter a segment for each stretch the account held a given end-of-day balance; the days should add up to the full statement period (28–31).

Why average daily balance, not average balance

Average daily balance (ADB) weights every balance by the number of days it was held, so it reflects how much cash a business truly keeps on hand across the month — not a lucky snapshot on deposit day. A merchant that deposits big on the 1st and drains the account by the 15th has a low ADB even if the peak balance looked healthy.

How underwriters use it

ADB sets the cushion side of the deal. Funders pair it with NSFs, negative days and true revenue to size an advance and price the factor rate. A thin ADB against a large requested advance is a fast decline.

Skip the manual entry. Instead of typing segments, upload the statement and get ADB computed from the reconciled daily balance series — snapped to the bank’s own printed end-of-day balances so a misread can’t inflate it.

Frequently asked questions

How do you calculate average daily balance?

Multiply each end-of-day balance by the number of days it was held, add those products across the whole statement period, and divide by the total number of days. It is a day-weighted average, so a one-day spike barely moves it.

What is a good average daily balance for an MCA?

Many funders want at least $1,000–$5,000, and often an ADB equal to 5% or more of monthly gross deposits. Higher, steadier balances support larger advances and better factor rates.

Is average daily balance the same as average balance?

No. A plain average of a few balances ignores how long each was held. Average daily balance weights every balance by its days, which is why it reflects real liquidity across the month.

Keep reading

GlossaryAverage Daily Balance (ADB)The full definition and how funders weigh it.ReadGuideHow to read a bank statement for MCAWhere ADB fits in the six-step read.ReadFree toolNSF & negative days checkerTally NSFs and negative days against typical MCA buy-box limits and see the paper-grade signal instantly.Read

Underwrite your next deal in 60 seconds

Drop a merchant’s bank statements and get true revenue, average daily balance, NSFs, negative days and existing MCA positions — each figure reconciled against the bank’s own printed balances. Your first business is free.

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