MCA field guide
How to calculate daily MCA payments
A transparent method for estimating daily and weekly remittances from amount, factor rate, term, and frequency.
Calculate total payback first
Multiply the advance amount by the factor rate. For $75,000 at 1.38, total payback is $103,500. If fees are withheld from proceeds but not included in payback, record net proceeds separately.
Estimate the number of payments
A quick estimate uses 21.75 business days per month for daily remittance or 4.345 weeks per month for weekly remittance. A ten-month daily estimate therefore uses about 218 payments. Exact schedules vary around holidays and contract dates.
Measure payment burden
Convert the remittance back to a monthly equivalent and divide it by average monthly revenue. That percentage is not an approval rule, but it makes competing offers easier to compare and highlights a payment that may strain cash flow.
Methodology and corrections
This guide distinguishes calculations, common industry practice, and lender-specific policy. Criteria should be confirmed from the dated source on each lender profile. Report an error through the correction policy.