Revenue-based financing repays a fixed percentage of monthly revenue until a capped multiple of the advance is repaid, so the payoff timeline stretches or shrinks automatically with how the business actually performs.
How it works
The advance amount times the repayment cap multiple gives the total amount owed. Monthly revenue times the revenue share percentage gives the monthly payment, and dividing the total owed by that payment gives the estimated months to payoff.
What this does not include
This does not include revenue fluctuations month to month (it assumes flat revenue for the payoff estimate), or minimum payment floors and revenue-reporting requirements some RBF agreements include.
How to use this calculator
- Enter the advance amount, repayment cap multiple, revenue share percentage, and monthly revenue.
Frequently asked questions
How is RBF different from a merchant cash advance?
An MCA is typically repaid via a fixed daily/weekly holdback of card sales at a pre-set factor rate; RBF instead takes a percentage of total monthly revenue (not just card sales) until a capped multiple is repaid.
What’s a typical repayment cap multiple?
Commonly in the 1.3x-3x range, though it varies by lender and the perceived risk of the business.
Does RBF involve giving up equity?
No — unlike venture capital, revenue-based financing is a form of debt repaid from revenue, not an equity stake in the company.
