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Ferrylend

Free calculator

Holdback and remittance calculator

Turn a fixed daily or weekly payment into the share of revenue it takes, or go the other way: start from the holdback a lender allows and get the largest payment that fits.

Inputs

$
Frequency
$

Deposits minus transfers, loans and refunds

Lender convention, usually 20 to 22

%

For the reverse calculation

Result

Holdback
14.06%
Payments per month
21
Monthly remittance
$11,249.91
Max daily payment at 15%
$571.43

Holdback = payment × payments per month ÷ monthly true revenue. Reverse: payment = revenue × target % ÷ payments per month.

How it works

monthly payment = payment × payments per month
holdback %      = monthly payment ÷ monthly true revenue × 100
max payment     = target holdback % × monthly true revenue ÷ payments per month
Payments per month: 21 for daily (or your lender's setting), 52 ÷ 12 for weekly, 26 ÷ 12 for biweekly, 1 for monthly.

On a fixed ACH deal the holdback is the effective share of revenue the payment takes. On a split-funding or card deal it is the contractual percentage of each sale. This calculator works out the effective figure.

Worked example

A $535.71 daily payment over 21 business days is $11,249.91 a month. Against $80,000 of monthly true revenue that is a 14.06% holdback.

Going the other way: if the lender caps holdback at 12% on the same merchant, the largest daily payment is 12% × $80,000 ÷ 21 = $457.14.

Which revenue to use

Use true revenue, not gross deposits. Take out transfers between the merchant's own accounts, loan and advance proceeds, refunds and owner injections. Gross deposits overstate what the business earns and make a heavy payment look affordable. Average the last three to six months, and look at the trend.

Using the result

Lenders often cap combined holdback, including existing advances, somewhere between 10% and 25%. If the merchant already has positions, run the stacking calculator to see the total. In the app, holdback and combined holdback are computed on every offer from the deal's statement figures, and a color band flags offers above the thresholds you set.

See holdback on every deal before you submit

Enter the statements once and every offer shows its holdback and combined holdback against your own thresholds.

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Questions

What is a holdback in a merchant cash advance?

The share of the merchant's revenue that goes to repaying the advance, either as a fixed percentage of sales or the effective share a fixed daily or weekly payment represents.

What holdback percentage is normal?

Many lenders look for a combined holdback, including existing advances, under about 15% to 25% of true revenue. Each lender sets its own limit.

Why use 21 days a month for daily payments?

ACH debits run on business days, about 21 a month. Some lenders use 20 or 22. The calculator lets you change it.

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