Revenue-Based Financing Payback Calculator
Estimate how many months it takes to repay a revenue-based financing advance when you remit a fixed share of growing revenue.
How it works
Total due = advance × multiple · Monthly remittance = revenue share × revenueₘ · repaid when Σ remittances ≥ total due
Revenue-based financing replaces fixed loan payments with a fixed share of monthly revenue until a capped total — usually 1.2× to 1.8× the advance — is repaid. Because remittances scale with revenue, faster growth repays the cap sooner, which raises the effective annualized cost even though the flat fee is unchanged. This tool grows your revenue month by month and sums the remittances until the cap is met.
Worked example
A $100,000 advance with a 1.5× cap means repaying $150,000. Remitting 8% of a $50,000 monthly revenue that grows 3% per month, the first month sends $4,000, rising each month; the cumulative remittances cross $150,000 in about month 26. The flat cost of capital is the 0.5× premium, or $50,000.
Frequently asked questions
How is this different from a loan?
There is no fixed schedule or APR — you remit a set percentage of revenue until a capped total is paid. Payments flex with your revenue, so slow months cost less and fast months finish the obligation sooner.
Why does faster growth make it more expensive?
The total repaid is capped at a fixed multiple, so repaying it in fewer months compresses the same dollar cost into a shorter period, raising the effective annualized rate. RBF is cheapest, in annualized terms, when revenue grows slowly.
What multiple is typical?
Repayment caps commonly range from about 1.2× to 1.8× the advance, depending on risk, revenue quality and the remittance share. A higher share repays faster but squeezes monthly cash flow more.
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Educational estimate, not financial advice.