Split Comparison Calculator
Compare compensation structures across three funders to find the best total deal for your business.
Why Compare Funder Splits?
Not all funder compensation structures are created equal. Some funders offer high upfront commission (12-15%) but zero residual, which maximizes immediate cash flow but leaves money on the table long-term. Others offer lower upfront (5-8%) with generous residual splits (50-80%), building a compounding income stream. A third category blends both at moderate levels. The right choice depends on your cash flow needs, deal volume, and long-term strategy. This calculator puts all three side by side on a 12-month basis so you stop chasing the highest upfront number and start looking at total income.
How to Use This Calculator
Enter a representative deal amount
Use the average funded amount of your deals. If your deals range widely, run the calculator at your median deal size for the most useful comparison.
Input each funder's commission and residual split
Get these numbers from your funder rate sheets or account manager. Upfront commission is the percentage paid at funding. Residual split is your share of ongoing collection income.
Compare the 12-month total
The calculator projects total income from a single deal over 12 months, including upfront and cumulative residual. The funder with the lowest upfront may win on a 12-month basis due to residual compounding.
Key Concepts
Upfront vs. Residual Tradeoff
Higher upfront commission means less cash for the funder to share as residual. Brokers must decide whether they prefer immediate income or long-term portfolio building.
Effective Compensation Rate
Total income from a deal divided by the funded amount, expressed as a percentage. This normalizes different compensation structures for apples-to-apples comparison.
12-Month Horizon
The standard comparison window. Residual-heavy structures need 6-12 months to overtake upfront-heavy structures. If you need cash now, upfront may win despite lower total income.
Expert Insights
The Cash Flow vs. Wealth Dilemma: New brokers almost always need upfront cash to cover marketing, rent, and lead costs. Taking the high-upfront funder is rational in the first 6-12 months. But once your monthly expenses are covered by commission flow, shift new deals toward residual-rich funders. The compounding effect of residuals across hundreds of deals over 3-5 years creates generational wealth that upfront commissions never will.
Hidden Funder Costs to Factor In: This calculator compares stated compensation, but real-world income depends on approval rates, funding speed, and clawback terms. A funder offering 12 points but approving only 30% of your submissions and clawing back on 10% of funded deals may net you less than a funder offering 8 points with 60% approval and 3% clawback. Always compare net realized compensation, not rate sheets.
Frequently Asked Questions
Results are estimates for educational purposes only. Actual amounts may vary based on your specific financial situation, market conditions, and other factors. This calculator does not constitute financial advice.
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