Free calculator
ISO commission calculator
Work out what a funded deal pays your shop: the lender's base commission, the upsell from selling above the buy rate, and how it splits between you, the rep and any referral partner.
Deal
Only matters on a net basis
Lender's base factor
Factor the merchant pays
Taken off the top
Result
- Total commission
- $4,500.009.00%
- Upsell points
- 7
- ISO markup (sell − buy)
- $3,500.00
- Partner / sub-ISO
- $0.00
- Rep
- $2,250.00
- House
- $2,250.00
Commission % = base % + (sell − buy) × 100. Commission $ = basis × commission %. If the merchant defaults inside the lender's clawback window, expect some or all of it to be taken back.
How it works
upsell points = (sell rate − buy rate) × 100 commission % = base commission % + upsell points commission $ = basis × commission % ÷ 100 basis = advance amount, net funding or payback (per the ISO agreement) rep share = commission $ × rep split % partner share = commission $ × partner split % house share = commission $ − rep share − partner share
The buy rate is the lowest factor the lender will fund at. Every 0.01 the ISO sells above it adds roughly one point on the advance. Most commissions are paid on the advance amount; some agreements use net funding or payback.
Worked example
| Figure | Value |
|---|---|
| Upsell points | 7.00 |
| Commission % | 9.00% |
| Commission | $4,500.00 |
| Rep at 40% | $1,800.00 |
| House | $2,700.00 |
Clawback exposure
Most ISO agreements let the lender take the commission back if the merchant defaults or stops paying within a set window, often 30 to 90 days. Until that window passes, treat the commission as at risk. If you have already paid the rep, decide in advance whether the rep's share is recovered too. See clawback.
Using the result
Selling higher points raises your commission and the merchant's cost, and makes the deal harder to renew. Check the payment still fits with the holdback calculator. In the app, commissions are created when a deal is funded, split by your settings, and matched against each lender's commission statement so short pays and clawbacks show up. See commission tracking.
Stop tracking commissions in a spreadsheet
Expected versus received on every funded deal, splits to reps and partners, clawbacks, and lender statements matched for you.
Questions
How much commission does an MCA ISO make?
Commonly 6% to 12% of the advance including upsell, depending on the lender, the paper grade and how far above the buy rate the deal is sold. Your ISO agreement sets the terms.
What are points in merchant cash advance?
Commission expressed as a percent of the funded amount. Selling 0.05 above the buy rate is about 5 upsell points.
When is ISO commission paid?
Usually within a few business days of funding, subject to clawback if the merchant defaults within the agreed window.
Related
- FeatureCommissions and reconciliationTrack expected versus received commissions per funded deal, split them with reps and partners, handle clawbacks, and reconcile lender commission statements line by line.Read
- FeatureOffer calculator and comparisonEnter advance, factor, buy rate, fees and frequency and get payback, net funding, payment, term, holdback and your commission. Compare every lender's offer side by side.Read
- SolutionMCA brokers and ISOsA merchant cash advance CRM for ISOs and brokers: lead import, bank statement figures, lender matching, submissions, offers, commissions and renewals in one place.Read
- Free toolMCA factor rate calculatorFree merchant cash advance calculator. Enter the advance, factor rate, fee and term to get payback, daily or weekly payment, cost of capital and an APR estimate.Read
- Free toolHoldback calculatorWork out an MCA holdback percentage from the daily or weekly payment and monthly revenue, or the payment a target holdback allows. Free, no signup.Read
- GlossaryBuy rateThe buy rate is the lowest factor a funder will accept on a deal from an ISO. The ISO can sell above it, and the gap becomes upsell commission.Read
- GlossarySell rateThe sell rate is the factor rate the merchant actually signs, set by the ISO at or above the funder's buy rate. It decides the payback and the ISO's upsell.Read
- GlossaryPointsPoints are ISO commission expressed as a percent of the funded amount: base points paid by the funder plus upsell points from selling above the buy rate.Read
- GlossaryClawbackA clawback is a funder taking back an ISO's commission because the merchant defaulted or stopped paying within a set window after funding, often 30 to 90 days.Read