MCA consolidation calculator: the payment and the total
Enter each advance you pay today and the consolidation offer in front of you. You will see the new payment beside the old ones, the cash it frees each month and how much it adds to what you owe. The math runs in your browser, so nothing you type is sent to us.
The advances you pay today
Use the payoff amount from each funder as the balance, and the payment as it shows on your bank statement.
What consolidation does, and what it does not
MCA consolidation replaces several advances with one. It changes when and how often you pay. When the new factor rate is above 1.00, the total you repay goes up, not down.
What it does
- Pays off your current advances
The new funder sends each current funder its payoff amount, and those debits end once the payoffs are confirmed.
- Leaves one payment
Several daily debits become one, on a schedule set by the new contract, daily or weekly.
- Spreads the balance over longer
A lower payment comes from a longer term. That is what frees cash each month.
What it does not do
- Lower what you owe in total
The new factor rate is charged on balances that already include part of each advance's cost. With any factor rate above 1.00, the new payback is higher than the balances it replaces.
- Fix a business that is losing money
It changes the shape of the payments, not the sales behind them. If deposits keep falling, the new payment can become hard to meet too.
- Stop the debits on day one
The old debits keep running until each payoff has been received. Keep enough in the account to cover them until then.
How to read your current balances
The balance that matters is the one it takes to close each advance, so ask each funder for a payoff letter before you compare offers. A consolidation offer is sized from those same figures, and a payoff that comes in higher than expected is a gap you would have to fill.
For the payment, use the debit as it appears on your bank statement. For deposits, use your average over the last few months rather than your best one.
The payoff amount
What closes the advance on a set date. It can differ from the balance in a funder's online portal, which may not count payments still clearing.
The date it is good through
Every business day you keep paying lowers the figure, so the letter should name a date.
Any early payoff discount
Some contracts lower the total if you clear the advance early. If yours does, the discount should show on the letter in dollars.
Where to send the money
Wire details for the payoff, so the new funder can pay it directly.
How the calculator works
For today, it turns each payment into a monthly figure, at 21 business days a month or 52 weeks over 12 months, and adds them up. Dividing each balance by its payment gives the number of payments left, and so the month each advance clears.
For the offer, the payback is the funding amount times the factor rate. The fees come off first, the balances are paid from what is left, and anything over reaches your account. The change in total owed is the new payback less the balances you owe today. The estimated APR uses the same actuarial method as our MCA calculator, on the funding amount less fees.
- Monthly payment today
- Daily payment × 21, or weekly payment × 52 ÷ 12, for each advance
- Share of deposits
- Monthly payments ÷ average monthly deposits
- Months to clear
- Balance ÷ payment, then ÷ payments in a month
- New total payback
- New funding amount × factor rate
- Cash freed each month
- Monthly payment today − new monthly payment
- Change in total owed
- New total payback − balances owed today
A worked example
These are example figures, not an offer. A business owes $31,500, $22,800 and $12,000 on three advances, paid at $450, $380 and $300 every business day, and takes in $60,000 a month. A consolidation offer funds the $66,300 owed at a factor rate of 1.35, with no fees, paid weekly over six months.
The monthly payment falls by $8,813, and by month 3 the business has kept $18,398 more in its account than it would have. After that the old advances wind down while the new one keeps running, and in the end the business repays $23,205 more. The new advance's estimated APR is about 123%.
Add a 3% fee taken from the same amount and the advance comes to $64,311 after fees, $1,989 short of the balances, and the estimated APR rises to about 136%.
| Measure | Three advances today | One consolidated |
|---|---|---|
| Total to repay | $66,300 | $89,505 |
| Payments a month | $23,730 | $14,917 |
| Per business day, averaged | $1,130 | $710 |
| Share of $60,000 monthly deposits | 40% | 25% |
| Paid off in | 3.3 months (the last one) | 6 months |
Reverse consolidation
In a reverse consolidation the new funder does not pay off your advances. They stay in place and keep debiting your account. Instead, the new funder deposits money into your account on a schedule, for example each week, enough to cover some or all of those debits for a set period. You repay the new funder on a slower schedule, starting right away.
As each old advance finishes, its debits stop and the deposits wind down. What is left is the payment to the new funder. Its factor rate is charged on the total it deposits, so the same question applies: how much more will you repay in all, and is the breathing room worth that amount?
This calculator assumes the whole amount is paid out on funding day. When the money arrives in pieces and your payments start at once, the same factor rate and term work out to a higher annual rate, so read the estimate here as the low end for a reverse consolidation.
Risks to weigh before you sign
Paying the cost twice
The balance on an advance includes part of the cost you agreed to when you signed, since the payback was the amount funded plus that cost. A new factor rate applied to that balance charges cost on cost, the same thing that happens on a renewal. How factor rates and renewals add up.
Stacking again afterward
Once the payment falls, taking another advance on top of the consolidation brings back the problem it solved, at a higher total. Read your contract for any clause on new financing while it is open.
Fees on a larger amount
Fees taken at funding come out before the balances are paid. If the funding amount only matches the balances, the fees leave a gap that someone has to cover.
A longer stretch of payments
The lower payment lasts longer than the advances it replaces. Check that the business can carry it in its slow months, not only its busy ones.
When consolidation helps
It makes sense when the payments are the problem and the business is not. If a cheaper product is within reach, such as a line of credit or an SBA or bank loan, price that too before you sign.
- The business is still selling well, and the trouble is several debits landing at once.
- The cash freed each month keeps payroll, rent or stock paid while the old advances would have run.
- The higher total is a cost you have looked at in dollars and can carry.
- Your current funders offer early payoff discounts, which lower the balances being consolidated.
Questions about MCA consolidation
MCA consolidation
A new funder advances enough to pay off the advances you have now, pays each current funder directly, and leaves you with one payment on its own schedule. You then repay the new advance, on a longer term than the ones it replaced when the aim is a lower payment.
Not when the new funding amount covers your balances and the factor rate is above 1.00, because the payback is then larger than what you owe. In the example on this page, $66,300 of balances becomes a $89,505 payback, $23,205 more, while the monthly payment falls by $8,813.
The new funder leaves your current advances in place and deposits money into your account on a schedule, enough to cover some or all of their payments for a while. You repay the new funder on a slower schedule, and once the old advances finish you are left with that one payment.
The old debits stop once each current funder has received its payoff. Until then, keep the account funded so they clear. If the new advance is paid every business day you still have a daily debit, but one instead of several.
Ask the funder in writing for a payoff letter. It should give the amount that closes the advance, the date it is good through, any early payoff discount, and where to send the money.
No. The calculator runs in your browser and sends nothing to us. The numbers are kept in the page address only so you can bookmark the page or send it to someone.
Read more about consolidation
- MCA consolidation and refinancingWhat to do when more than one advance is coming out of the account.
- Consolidation through our networkHow we take your advances to funders that consolidate.
- Factor rate vs APRThe math by hand, fees and what a renewal costs.
- MCA calculatorThe cost, payment and APR of a single advance offer.
