Revenue-Based Financing Calculator
With revenue-based financing you repay a fixed multiple of the funding through a percentage of each month's revenue. Payments rise and fall with sales, so the time to repay depends on how the business performs.
Enter your figures below. Results update as you type.
Repaid in2 yr 0 mo
- Total you repay
- $140,000.00
- Cost of the funding
- $40,000.00
- First monthly payment
- $4,800.00
- Last monthly payment
- $1,544.18
- Estimated APR
- 33.1%
- Remaining
How the Revenue-Based Financing calculation works
Total repaid = funding x cap; monthly payment = revenue x share %
$100,000 at a 1.4x cap means repaying $140,000. Paying 8% of $60,000 in monthly revenue, growing 2% a month, clears it in about 2 years, an effective APR of roughly 33%. Faster growth repays sooner and pushes the APR up, because the cost is fixed.
Frequently asked questions
How does revenue-based financing work?
You receive funding and repay a set multiple of it, usually 1.2 to 1.6 times, by handing over a fixed percentage of monthly revenue until the total is reached. There is no fixed term.
Is revenue-based financing the same as a merchant cash advance?
They share the idea of repaying from sales. An MCA is collected daily from card or bank receipts at a factor rate; revenue-based financing is usually collected monthly from total revenue, often by technology and subscription businesses.
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