MCA Underwriter
Free tool

Factor rate & payback calculator

Turn an advance amount and factor rate into total payback, cost of capital, and an estimated daily and weekly remittance over the term. Free, no signup.

Total payback
$67,500
Cost of capital
$17,500(35%)
Est. daily remittance
$535.71
Est. weekly remittance
$2,598.15

A factor rate is a flat multiplier: payback = advance × factor, applied once. Paying early doesn’t lower it. Daily/weekly remittance assumes ~21 business days and ~4.33 weeks per month over the term — actual schedules vary by funder.

How a factor rate works

A factor rate is a flat multiplier applied once to the advance: payback = advance × factor. A 1.35 factor means $1.35 back for every $1 advanced. Unlike interest, it doesn’t accrue over time, so paying off early doesn’t lower the total owed.

Factor, holdback and cash flow

The factor sets the total cost; the holdback sets the speed. Together they define the daily remittance the merchant’s account has to absorb — which is why the offer has to be sized against real average daily balance and any existing positions, not just headline revenue.

Size the offer on trustworthy numbers. Before you price a deal, get a clean read of true revenue, ADB and existing positions — scan the statements and start from reconciled figures.

Frequently asked questions

How do you calculate MCA payback from a factor rate?

Multiply the advance by the factor rate. A $50,000 advance at a 1.35 factor is $67,500 of total payback — a $17,500 cost of capital. The factor is applied once, not annualized.

Is a factor rate the same as an APR?

No. A factor rate is a flat multiplier that doesn’t change with time, so repaying early doesn’t reduce the total owed. The effective APR of an MCA is usually far higher than the headline factor implies because the term is short.

How is the daily remittance figured?

Divide total payback by the number of business days in the term (roughly 21 per month for daily-ACH advances). Weekly advances divide by about 4.33 weeks per month. Actual schedules vary by funder.

Keep reading

GlossaryFactor RateThe full definition and what moves it.ReadGlossaryHoldbackHow the daily/weekly retrieval is set.ReadGuideHow MCA underwriting worksThe full read behind pricing a deal.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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