Get instant calculations for your revenue based financing with this free RBF calculator. Whether you're considering alternative business financing or comparing multiple offers, this calculator can help you understand the true cost of revenue-based funding including revenue multiples, total repayment amounts, and monthly payment estimates.
How to Use This RBF Calculator
Step 1: Enter Your Business Information
Monthly recurring revenue (MRR) or total monthly revenue
Desired financing amount
Business growth rate and revenue projections
Step 2: Review Your Calculated Terms
Revenue multiple
Total repayment amount
Estimated monthly payments as percentage of revenue
Payback period
Step 3: Compare Your Options Use the results to compare different revenue based financing offers and understand which option works best for your business cash flow.
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Frequently Asked Questions (FAQ)
What is a revenue based financing calculator? A revenue based financing calculator is a tool that helps business owners estimate the cost and payment terms of RBF. It calculates your total repayment amount, revenue multiple, and monthly payment obligations based on your business revenue and the financing amount you're seeking.
How accurate are RBF calculator results? Our revenue based financing calculator provides estimates based on typical industry terms. Actual offers may vary based on your business's growth metrics, revenue consistency, and the specific lender's criteria. Use these calculations as a starting point for comparing offers.
What's the difference between revenue multiples and interest rates? Revenue multiples are applied to the financing amount to determine total repayment (e.g., $100,000 × 1.08 = $108,000 total). Interest rates are annual percentages applied over time. Revenue multiples represent the total cost regardless of how quickly you repay.
How do I calculate my revenue based financing payment? Your RBF payment is typically a fixed percentage of your monthly revenue (usually 2-10%). For example, if you have $50,000 in monthly revenue and a 6% payment rate, your monthly payment would be $3,000.
What information do I need to use the calculator? You'll need your average monthly revenue, desired financing amount, and estimated revenue multiple. Some calculators also ask for your revenue growth rate and business type.
Can I use this for other types of business funding? While designed for revenue based financing, this calculator can help estimate costs for similar products like royalty financing, income share agreements, and some alternative lending products with revenue-based repayment structures.
What's a good revenue multiple for revenue based financing? Revenue multiples typically range from 1.06 to 1.12. Lower multiples (1.06-1.08) are better and usually offered to businesses with consistent revenue growth and strong metrics. Higher multiples (1.10-1.12) may apply to earlier-stage or higher-risk businesses.
How quickly will I repay my revenue based financing? Repayment speed depends on your monthly revenue and payment percentage. Most RBF is repaid within 12-48 months. Businesses with higher revenue growth typically reach the repayment cap faster.
Are there any hidden fees in revenue based financing? While our calculator shows the main costs, some RBF may include due diligence fees, legal fees, or early repayment discounts. Always review the complete terms before signing.
How does this compare to a traditional business loan calculator? Traditional business loan calculators use interest rates and fixed terms. RBF calculators focus on revenue multiples and percentage-based repayment. RBF is typically more expensive but offers flexible payments and fewer qualification requirements.
Disclaimer: This revenue based financing calculator provides estimates only. Actual terms, rates, and payments may vary based on your business qualifications and lender criteria. Always review complete terms before accepting any funding offer.
