- Smarter Loans
- MCA Calculator
MCA Calculator
Our free Merchant Cash Advance Calculator helps Canadian business owners quickly estimate total repayment, cost of capital, and repayment time based on their sales.
Adjust the advance amount, factor rate, holdback %, and monthly revenue—or start with preset industry scenarios. Compare results with traditional business loans, lines of credit, and credit cards to decide what’s best for your cash flow. Disclaimer: For illustration only; confirm final terms with your provider.
Merchant Cash Advance Calculator for Small Businesses in Canada
Use our free Merchant Cash Advance (MCA) Calculator to estimate your total repayment, cost of capital, and payback period based on your sales. Enter your advance, factor rate, holdback %, and monthly revenue—or tap an industry preset to get started fast. Disclaimer: Estimates only; confirm terms with your provider. Not financial advice.
Industry Presets
Tap a tile to auto-fill typical monthly revenue and starting advance for that industry. You can adjust anything after.
MCA Calculator
The lump sum you receive today.
Factor is a fixed multiplier. Example: factor 1.30 on a $10,000 advance means you repay $13,000 total—regardless of speed. It is not an interest rate.
Percentage withheld from daily/weekly credit & debit card sales until the balance is fully repaid.
Your typical monthly card sales. Higher sales = faster repayment (more dollars held back each day).
Results
Total Repayment
Cost of Capital
Estimated Months to Repay
| Metric | Value | Explanation |
|---|
Repayment time is an estimate using monthly revenue × holdback% ÷ calendar. Actual timing varies with daily sales and any provider fees.
Merchant Cash Advance vs Other Financing
| Feature | MCA | Business Term Loan | Business Line of Credit | Business Credit Card |
|---|---|---|---|---|
| Funding Speed | ✅ 1–3 days | ⏳ 1–3 weeks | ⏳ 1–2 weeks | ✅ Instant (if approved) |
| Repayment | % of sales (variable) | Fixed monthly payment | Flexible draws + interest | Revolving balance + minimums |
| Cost | High (factor-based) | Lower fixed/variable APR | Prime + margin | ~18–25% APR |
| Best For | Fluctuating card sales | Predictable cash flow | Short-term working capital | Small purchases & rewards |
Merchant Cash Advance Basics
MCAs use a factor rate (e.g., 1.30). Your total repayment = advance × factor. The cost of capital is (total repayment − advance). There’s no interest rate or amortization, so paying faster doesn’t reduce the total amount owed.
A fixed holdback % of card sales is withheld until you’re fully repaid. If sales drop, payments drop. If sales spike, you repay faster.
Typically based on business revenues, card processing history, and time-in-business rather than collateral or personal credit alone. Funding can be quick with minimal documentation.
MCAs are expensive relative to loans. Ensure the cash flow boost (inventory, repairs, marketing) is expected to generate enough profit to justify the cost.
When an MCA Can Make Sense
Stock up before peak season (e.g., Q4). Variable repayment matches slower off-season and faster peak months.
Fund urgent oven/fridge repairs in days to protect revenue with minimal downtime.
Finance ads or renovations to boost bookings; repay as card sales increase.
Need fast business financing?
Compare business loan and cash advance options from trusted Canadian lenders.
Compare Business Loan OptionsHow to Use the MCA Calculator
- Tap an industry preset to auto-fill typical monthly revenue and starting advance.
- Enter your advance, factor rate, holdback %, and monthly revenue.
- Hit Calculate to see total repayment, cost of capital, and estimated months to repay.
- Compare with a term loan, line of credit, or credit card in the comparison table.
Tip: If the estimated payback is under 6 months, your effective cost per month is higher—ensure your use of funds will generate sufficient ROI.
Merchant Cash Advance FAQs
Is a factor rate the same as an interest rate?
No. A factor rate is a multiplier applied to the advance to determine the total you repay. It is not an interest rate and does not decline as you repay.
How is the estimated repayment time calculated?
We estimate months to repay by dividing total repayment by the average amount withheld each month: monthly card sales × holdback %. Actual timing varies with daily sales and provider policies.
What holdback % should I choose?
Common ranges are 10–20% of card sales. Higher holdback repays faster but reduces near-term cash flow.
Can I save money by paying off early?
Usually no. MCAs are factor-based, so most providers collect the full amount regardless of speed. Ask your provider about early payoff terms.
When is an MCA better than a loan?
When speed and flexible repayment outweigh cost—e.g., urgent equipment repair, seasonal inventory purchases, or a short-term marketing push with clear ROI.
Do MCAs affect my credit?
MCAs often rely on business revenues and processor statements; they may not appear like loans on credit reports. However, defaults can still have credit and legal consequences.
Explore Your Options Before You Commit
See offers for MCAs, term loans, and lines of credit from vetted Canadian providers.
See Financing Options
