About the Revenue-Based Financing Calculator
This revenue-based financing (RBF) calculator shows what a revenue share deal really costs. Enter the amount advanced, the repayment cap (the total you must pay back, as a multiple of the advance), the percentage of monthly revenue you remit, your current monthly revenue and its expected growth, plus any up-front fee. It projects each monthly payment until the cap is repaid and returns the total repayment, the term, the first payment and the effective APR.
It is built for SaaS, e-commerce and subscription founders weighing RBF against venture capital, a bank loan or a merchant cash advance. Because the cap is fixed, faster growth shortens the term — which means the same fee is paid over less time and the effective annual rate rises. The calculator makes that trade-off explicit so you can compare offers on a like-for-like annual cost.
The projection assumes revenue grows at a constant monthly rate, payments are made monthly in arrears and the deal has no minimum payment, maximum term or prepayment discount. Real agreements often include those features, so check the contract and re-run the numbers with the provider’s figures.
With the default inputs, the effective apr is 26.06%. Change any value above to recalculate instantly.
How to use the revenue-based financing calculator
- 1Enter the amount advanced and the repayment cap from the offer.
- 2Enter the revenue share percentage and any up-front fee.
- 3Enter your current monthly revenue and a realistic monthly growth rate.
- 4Review the months to repay, payments and effective APR.
- 5Change the growth rate to see how faster or slower growth changes the true cost.
Formula and method
In revenue-based financing the funder advances cash in exchange for a fixed share of future revenue until a repayment cap is reached. The total repaid is fixed — the advance multiplied by the cap — but the timing depends on how much revenue you earn. Each month’s payment is the revenue share times that month’s revenue, with the final payment reduced to whatever remains.
To compare the deal with a loan, the calculator finds the monthly internal rate of return r that makes the present value of all payments equal to the cash received after any up-front fee. Multiplying r by 12 gives a nominal APR, and compounding it gives the effective annual rate. Because the cap is fixed, the quicker you repay the higher the annualised cost.
- Cap
- Repayment cap as a multiple of the advance
- Share
- Percentage of monthly revenue remitted
- g
- Monthly revenue growth rate
- r
- Monthly internal rate of return of the cash flows
Worked examples
$250k at a 1.4× cap, 6% of $150k monthly revenue growing 2%
The cap means repaying $350,000. Payments start at $9,000 a month (6% of $150,000) and rise with revenue, so the cap is reached in month 30. Solving for the monthly return on those cash flows gives about a 26.1% APR (29.4% compounded annually).
Flat revenue, no growth
With revenue flat at $150,000, payments stay at $9,000 and $350,000 takes 39 months (38 full payments plus a final $8,000). The slower repayment spreads the same $100,000 cost over more time, lowering the APR to about 21.6%.
Higher share and a 2% fee
A 1.3× cap on $250k is $325,000, while a 2% fee means only $245,000 arrives. Paying 10% of growing revenue repays the cap in 19 months, which is fast — so even with a lower cap the APR is about 35.3%.
Frequently asked questions
What is revenue-based financing?+
Revenue-based financing is non-dilutive funding where a company receives cash up front and repays it with a fixed percentage of monthly revenue until a pre-agreed total — the repayment cap — has been paid. Payments rise and fall with revenue instead of being fixed like a loan.
What is a typical repayment cap?+
Caps are commonly somewhere between about 1.1× and 2× the advance, depending on the provider, the company’s risk and the expected repayment period. Always convert the cap into an APR using your realistic growth, because the same cap can be cheap over five years and expensive over one.
How is RBF different from a merchant cash advance?+
Both are repaid from revenue, but MCAs are typically short-term advances against card sales with daily or weekly deductions and factor rates that often translate into very high APRs. RBF for SaaS and online businesses usually takes monthly payments over a longer horizon.
Why does faster growth make RBF more expensive?+
The total repayment is fixed by the cap. If revenue grows faster, you hit the cap sooner, so the same dollar cost is paid over a shorter time and the annualised rate goes up, even though you pay the same amount in total.
Does revenue-based financing dilute ownership?+
No. RBF does not take equity, so founders keep their ownership. Some agreements include warrants or covenants, however, so read the terms carefully.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.