MCA Cost Calculator
Calculate the true cost of Merchant Cash Advance funding
Typical range: 1.10 - 1.25
Typical range: 5-15%
Common Questions
How is MCA cost calculated?▼
MCA cost is determined by the factor rate. Factor rate × borrowed amount = total repayment. Example: £30,000 × 1.15 = £34,500 total. Your cost is £4,500 (15% of borrowed amount).
What is a typical factor rate?▼
Factor rates typically range from 1.10 to 1.25 for UK businesses. Lower risk businesses (established, high turnover) get 1.10-1.15. Higher risk or newer businesses may see 1.18-1.25.
How does this compare to a bank loan?▼
Bank loans charge annual interest (5-10% APR). MCA charges a fixed cost regardless of repayment time. For 6-month repayment, MCA is often more expensive. For short-term needs (3-4 months), costs are similar.
Sources and assumptions
The calculator assumes a 30-day trading month and repayment as a fixed percentage of card sales. Your actual factor rate and repayment percentage are set by the lender. General guidance:
CapExpand Ltd (Company No. 14433858) is a commercial finance introducer, not a lender. We are not currently authorised or regulated by the Financial Conduct Authority and do not provide financial advice. All information on this page is for educational purposes only. Funding is subject to status and lender criteria. CapExpand will receive a commission from providers at no extra cost to you.