MCA costs & payments
MCA Annualized Cost Calculator
Compare the timing-sensitive cost of equal payments with the cash your business actually receives.
How to use this calculator
- Start with the money received after withheld fees and payoffs, not the headline advance.
- Enter equal payment amounts and the number of scheduled payments.
- Choose the frequency. Use the same convention when comparing quotes.
How the calculation works
The calculator solves for the periodic rate at which the present value of all payments equals net proceeds. Annualized nominal cost multiplies that rate by the number of periods per year. Effective annual cost compounds the periodic rate over a year. Payments are assumed to occur at the end of evenly spaced periods. The result is a mathematical financing comparison, not a statutory APR disclosure or a finding that a transaction is a loan.
Worked example
These results use the editable example values shown in the calculator. They illustrate the method and do not predict an offer or outcome.
- Annualized nominal cost rate
- 139.57%
- Effective annual cost rate
- 302.27%
- Total scheduled payments
- $134,999.80
- Financing cost
- $37,999.80
Questions about the results
Why is annualized cost higher than the factor rate suggests?
Payments reduce the money available to use throughout the term. A factor rate measures the total repayment multiplier but does not reflect that repayment timing.
Can I use this for irregular or revenue-based payments?
Not accurately. This version requires equal payments at regular intervals. Use the actual dated cash flows for an irregular-payment analysis.