The method
How it is worked out
Effective APR = IRR of (−advance, monthly revenue share payments until the cap is reached)
- cap
- Advance × factor
- share
- Percentage of revenue swept each month
Revenue-Based Financing Calculator
Turn a revenue-share offer into a repayment timeline and an effective APR, then compare it with a term loan. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Revenue volatilityReal revenue is lumpier than steady growth.
- MinimumsSome agreements set a minimum monthly payment.
- Early settlementPaying the cap early does not reduce it.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Revenue-Based Financing Calculator
Turn a revenue-share offer into a repayment timeline and a true annual cost, then compare it with a term loan over the same period. Fast-growing companies repay sooner, which makes the money more expensive.
How it works and an example to tryShow less
How to use the result
Each month a share of projected revenue is paid until the cap (advance times the factor) is reached. The effective APR is the internal rate of return of the advance and those payments. A term loan at your alternative rate over the same months is priced for comparison.
Example to try
A £200,000 advance with a 1.12× cap and 8% of £120,000 monthly revenue growing 2% repays in about 22 months for £24,000 of cost: an effective annual rate around 13%. Faster growth shortens the term and raises the rate.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Ecommerce and SaaS founders offered revenue-based funding, finance leads comparing it with venture debt or a bank loan and advisers explaining the true cost.
Mistakes worth avoiding
- Reading the factor rate as the annual cost.
- Ignoring that faster growth makes the effective rate higher, not lower.
- Missing minimum payments and early-settlement terms in the agreement.
Questions
What does the Revenue-Based Financing Calculator do?
Turn a revenue-share offer into a repayment timeline and an effective APR, then compare it with a term loan.
How should I use the result?
Each month a share of projected revenue is paid until the cap (advance times the factor) is reached. The effective APR is the internal rate of return of the advance and those payments. A term loan at your alternative rate over the same months is priced for comparison.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a revenue-based financing calculator?
Reading the factor rate as the annual cost. Ignoring that faster growth makes the effective rate higher, not lower. Missing minimum payments and early-settlement terms in the agreement.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.