Revenue Based Lending Calculator
See how revenue remittance affects operating cash flow
Revenue-based lending and merchant cash advance structures can feel flexible because payments move with sales, but the remittance still comes out of operating cash flow. This calculator estimates total payback, payoff months, monthly remittance, and cash left after debt service.
- ✓Calculates total payback from advance amount and factor rate
- ✓Models monthly remittance as a percentage of revenue
- ✓Shows cash after debt service using gross margin and operating expenses
- ✓Compares first-month impact against a fixed-payment term loan
| Month | Revenue | RBL Payment | Cash After Debt | Payback Balance |
|---|---|---|---|---|
| 1 | $120,000 | $14,400 | -$800 | $120,600 |
| 2 | $120,000 | $14,400 | -$800 | $106,200 |
| 3 | $120,000 | $14,400 | -$800 | $91,800 |
| 4 | $120,000 | $14,400 | -$800 | $77,400 |
| 5 | $120,000 | $14,400 | -$800 | $63,000 |
| 6 | $120,000 | $14,400 | -$800 | $48,600 |
| 7 | $120,000 | $14,400 | -$800 | $34,200 |
| 8 | $120,000 | $14,400 | -$800 | $19,800 |
| 9 | $120,000 | $14,400 | -$800 | $5,400 |
| 10 | $120,000 | $5,400 | $8,200 | $0 |
Frequently Asked Questions
What is revenue-based lending?
Revenue-based lending is financing repaid from a percentage of revenue rather than a fixed monthly payment. Many products use a factor rate to set the total payback.
How is a factor rate different from an interest rate?
A factor rate multiplies the advance to determine total payback. A 1.35x factor on $100,000 means $135,000 must be repaid, regardless of how quickly repayment happens.
Why does revenue-based lending hurt cash flow?
The remittance is taken from sales before the business has fully absorbed payroll, inventory, rent, taxes, and other operating needs. A high remittance rate can create cash crunches even when revenue is strong.
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This tool is for educational purposes only. Results do not constitute a loan offer, pre-qualification, or guarantee of financing. Consult a licensed financial professional for advice specific to your situation.