Revenue-Based Financing (RBF) Calculator
Revenue-based financing (RBF) is a non-dilutive funding option where you repay a fixed multiple of the loan via a percentage of monthly revenue. Calculate the effective APR, expected payback period, and total cost — and compare it against venture debt or a credit line.
| Amount Borrowed | — |
| Repayment Multiple | — |
| Revenue Share | — |
| Total Fee Paid | — |
| Total Repaid | — |
| Months to Repay | — |
| Effective APR | — |
How Revenue-Based Financing Works
RBF is non-dilutive debt where you repay a fixed multiple of the principal — usually 1.3x to 1.6x — via a percentage of monthly revenue (typically 5-12%). The lender doesn't take equity or board seats. You pay until the multiple is fully repaid; faster revenue growth = faster repayment.
Major RBF providers: Clearco, Pipe, Capchase, Founderpath, Lighter Capital. Most originate online with simple application based on revenue history (12+ months Stripe/QuickBooks data). Approval in days, funding in weeks.
Effective APR Math
A 1.4x multiple repaid over 18 months is roughly 28% APR — much higher than venture debt (10-15%) or a credit line (8-12%). The faster you grow revenue, the higher the APR (you repay sooner = same fee compressed into shorter window). Slower growth lowers APR but extends the obligation.
Compare against your cost of equity. If raising equity dilutes you 5-10%, RBF may still be cheaper in dollar terms over 18-24 months. Run our venture debt vs equity calculator for the comparison.
When RBF Beats Venture Debt or Equity
RBF beats venture debt when: (a) you're not venture-backed and can't get bank debt, (b) you want zero personal guarantee, (c) your revenue is consistent and predictable. RBF beats equity when: you're profitable or near it, growth is steady, and the dilution cost would exceed the RBF fee.
RBF doesn't make sense when: revenue is lumpy (consulting, project-based), margins are thin (under 30% gross), or you need the cash for a non-revenue-generating use (R&D, hires). The mechanism punishes inconsistent revenue with longer payback.
Watch the Fine Print
Some RBF agreements include MAC (material adverse change) clauses, minimum monthly payment floors, or automatic re-up options. Check whether the revenue share is capped or unlimited (some take 12% indefinitely). Watch for 'true-up' provisions that adjust the multiple based on performance.
Always ask for the effective APR calculation in writing. RBF marketers prefer to quote the multiple, not the APR, because the APR sounds high. A 1.5x in 12 months is ~50% APR.
Source: sec.gov RBF disclosure guidance