What share of your real sales does each MCA take?

What this tells you

Many agreements set a payment as a fixed dollar amount that was sized as a percentage of your sales when the advance was made. If your sales drop, that same dollar amount takes a bigger share.

This page works backward. It turns each payment into a monthly amount, divides it by your real sales and shows the effective percentage. If your contract states a percentage, it shows the gap.

The key number is real sales, not total deposits. Deposits can include transfers, loan money and refunds that are not sales. How your contract defines sales controls.

A gap is a reason to read your reconciliation clause and check the real debits. It does not decide anything by itself.

How it is worked out

• Real sales = total deposits − transfers between your accounts − loan or advance money − owner money − refunds and money sent out and deposited again.
• Monthly amount taken: weekly payment × 52 ÷ 12, or daily payment × 21 business days.
• Effective % = monthly amount taken ÷ monthly real sales × 100.
• Difference = effective % − the percentage in your contract, in points, and in dollars a month.
• Combined % = all monthly amounts added up ÷ monthly real sales.

Common mistakes

• Using total deposits as sales. That makes the percentage look smaller than it is.
• Using one unusual month. Try an average of a few months.
• Using a gross figure when your contract says net, or the other way round. Read the definition of receipts.
• Forgetting an MCA that is taken from another account.
• Treating the contract percentage as a payment cap you can apply yourself. Your agreement sets how adjustments work.