Tool
Revenue-Based Financing Cost Calculator
Estimate revenue-based financing repayment caps, revenue share payments, payoff timing, finance charge, and effective APR before accepting an RBF offer.
Compare revenue share funding against fixed payments
Revenue-based financing can flex with sales, but repayment multiples and revenue share percentages can create a high annualized cost. Compare the offer with the merchant cash advance calculator, business loan APR calculator, and cash flow forecast calculator.
Revenue-based financing calculation
Repayment cap = funding amount × repayment multiple. The model then applies the revenue-share percentage to each projected month of revenue until the cap is repaid or the selected modeling period ends. Upfront fees reduce net cash received and increase the effective cost.
With the starting inputs, $50,000 of funding at a 1.4 repayment multiple creates a $70,000 repayment cap. An 8% share of $40,000 first-month revenue is $3,200. The estimated payoff timing changes as monthly revenue grows or contracts, which is why two offers with the same multiple can have different annualized costs.
This calculator is an estimate for planning and comparison only. Actual agreements may include minimum payments, reconciliation rules, default terms, personal guarantees, collateral, or revenue definitions that change the result.
Frequently asked questions
How is a revenue-based financing payment calculated?
The modeled monthly payment equals monthly revenue multiplied by the revenue-share percentage, limited by the remaining repayment cap. Actual agreements may add minimum payments or define revenue differently.
What is the repayment cap in revenue-based financing?
The repayment cap is the funding amount multiplied by the repayment multiple. For example, $50,000 at a 1.4 multiple requires $70,000 of total repayments before other fees.
Why estimate an APR for revenue-based financing?
A repayment multiple does not show how expensive fast repayment can be. An estimated annualized rate makes offers with different funding amounts, shares, fees, and payoff timing easier to compare.