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T244 · Cat-20 · SME Financial Health · Revenue-Based Finance

Model revenue-based finance product economics

Calculate repayment timeline, total cost of capital, effective APR equivalent, and payback period under three revenue scenarios for any revenue-based finance (RBF) product. Compare the true cost against the advance amount and cap rate. Policy Mandate JSON financing terms export. Client-side. Zero PII.

RBFRevenue ShareRepayment TimelineZero PII · Client-side

Last Reviewed · 2026-05-12

Configuration

Currency

Business Type

Advance Amount (total RBF facility)

Enter a positive advance amount.

Current Monthly Revenue

Enter a positive monthly revenue.

Revenue Share % (% of monthly revenue)

Enter revenue share 0.5–30%.

Cap Rate (payback multiple) (e.g. 1.35 = repay 135% of advance)

Enter cap rate between 1.0 and 3.0.

Revenue-Based Finance Analysis

Total Repayment

—

advance × cap rate

Cost of Capital

—

total repay − advance

Effective APR

—

annualised equivalent rate

Monthly Repayment

—

at base revenue

Repayment Progress — Base Scenario

Months 1–—

— remaining

Revenue Sensitivity — Payback Period

−20% Revenue

Monthly Repayment

—

● Base Case

Monthly Repayment

—

+20% Revenue

Monthly Repayment

—

Methodology & Citations

Revenue-Based Finance mechanics: Advance × Cap Rate = Total Repayment. Monthly Repayment = Monthly Revenue × Revenue Share %. Payback Period = Total Repayment ÷ Monthly Repayment. Repayment flexes with revenue.
Effective APR calculation: IRR-based annualised rate derived from monthly cash flows over the payback period. Comparable to APR for loan comparison purposes only — RBF is not a loan.
Market reference: typical UK/US RBF cap rates 1.2–1.6×; revenue share 3–15% of monthly revenue. Source: British Business Bank RBF Market Report 2024; Clearco / Capchase published product terms 2024.
RBF is not a loan — there are no fixed monthly payments and no personal guarantee is typically required. Repayment automatically adjusts with revenue fluctuations.

About This Tool

Revenue-Based Finance is an advance repaid as a fixed percentage of monthly revenue. You pay more when revenue is high, less when it's low — no fixed payment, no personal guarantee.

Total Repayment
= Advance × Cap Rate

Monthly Repayment
= Monthly Revenue × Share%

Payback Months
= Total Repay ÷ Monthly Repay

Effective APR is calculated as the internal rate of return (IRR) of cash flows, annualised. Use for comparison only — RBF is not a debt instrument and APR may be misleading for short payback periods.

Best suited for: SaaS, subscription, or e-commerce businesses with predictable monthly revenue, 6+ months trading, and no hard asset base for traditional secured lending.

Cross-link: T240 Working Capital Calculator — quantify the funding gap before sizing the RBF advance.