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Revenue-Based Financing Calculator

See how long repayment takes and what revenue-share financing really costs you.

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What Is Revenue-Based Financing?

Revenue-based financing gives you an advance in exchange for a percentage of your monthly revenue until you've paid back a set multiple. Unlike MCAs with their daily holdbacks, RBF usually collects monthly and uses a cap multiple instead of a factor rate. Take a $50,000 advance with a 1.5x cap: you pay back $75,000 total by giving up, say, 5% of monthly revenue. Growing fast? You pay off sooner. Revenue dips? Payments shrink and the timeline stretches. This calculator models how long payoff takes at your current revenue, then converts the cost to an effective APR. RBF has become popular with SaaS, e-commerce, and subscription businesses because payments flex with how the business is actually doing.

How to Use This Calculator

1

Enter Monthly Revenue

Your current average monthly revenue. The calculator holds this number steady for the estimate -- in reality, payoff will shift as revenue moves up or down.

2

Set the Advance Amount

The capital you're getting from the RBF provider. Most advances are 1-4 months of revenue.

3

Input Revenue Share Percentage

The percentage of monthly revenue going to the RBF provider. Most range from 2-10%.

4

Set the Repayment Cap

This sets your total repayment. A 1.5x cap on $50K means you pay back $75K, period. Doesn't matter how long it takes.

Key Concepts

Revenue Share Rate

The fixed cut of monthly revenue going to the RBF provider. At 5% on $100K monthly revenue, you're handing over $5,000 each month.

Cap Multiple

Your total repayment as a multiple of the advance. 1.5x on $50K = $75K back. Lower cap = less total cost. Simple as that.

Revenue Growth Benefit

When revenue grows, payments grow too, which shortens your payoff timeline. Growing businesses clear the debt faster -- the opposite of how fixed-payment loans work.

Revenue Decline Protection

Revenue drops? Payments drop with it. You get built-in cash flow protection during slow periods -- something fixed-payment loans can't give you.

No Equity Dilution

You keep 100% of your company. No equity stake, no board seats, no investors telling you how to run things. You just pay a fixed total from revenue.

Expert Insights

RBF works when your gross margins are above 50% and revenue is predictable. If margins are thin -- under 30% -- that revenue share eats into operating capital and you end up with the same cash flow crunch as an MCA.

Match the cap multiple against your growth trajectory. Growing 10%+ monthly? A 1.5x cap might pencil out under 30% APR. Flat revenue? Same deal could hit 60%+ APR. Run the math at optimistic, realistic, and pessimistic scenarios.

Fight for a lower cap multiple, not a lower revenue share. Dropping from 1.5x to 1.3x saves far more money than shaving a percentage point off your revenue share, especially if payoff is under 12 months.

Frequently Asked Questions

Three big differences: RBF collects monthly instead of daily, uses a cap multiple instead of a factor rate, and is structured as financing rather than a purchase of receivables. RBF providers also usually don't slap a UCC-1 lien on all your business assets.
Mostly SaaS, subscription businesses, and e-commerce with steady monthly revenue. Providers want at least $10K-$50K in monthly recurring revenue and 6+ months of operating history.
Most agreements have a 3-5 year maximum term. If you haven't hit the cap by then, the remaining balance may come due as a lump sum or convert to different terms. Read that clause carefully.
Unlike MCAs, some RBF providers give buyout discounts for early repayment. Pay back within 6 months and a 1.5x cap might drop to 1.3x. Negotiate these terms before you sign -- they're not always offered unprompted.
Most RBF providers skip the hard credit pull and don't report to consumer bureaus. They care about your bank statements and revenue data instead. Some do report to business credit bureaus if payments are late, though -- ask upfront.

This calculator provides estimates for educational purposes only. Actual results depend on your specific business financials, lender terms, and market conditions. Consult a qualified financial advisor before making major business financing decisions.

Explore Revenue-Based Financing

Compare RBF providers and find flexible financing that scales with your business.

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