This calculator converts a revenue-based financing offer into the two numbers that actually matter: the total dollars you will repay, and what that works out to as an annualized rate once your repayment speed is accounted for. Enter the advance and the factor rate, choose whether you are remitting a share of revenue or a fixed payment, and it does the rest.
| If fully repaid in… | Total repaid | APR-equivalent |
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Estimates for education only — not an offer, quote, or approval, and not a prediction of the terms any provider (including REIL Capital) would extend. Actual factor rates, holdback percentages, and eligibility vary by provider and underwriting. The APR-equivalent is the internal rate of return of the payment schedule, annualized (×12) from the monthly rate, so you can compare an advance against products that quote interest rates. With a revenue holdback, repayment speed follows your revenue: months when revenue rises, you repay faster — and the effective annualized rate rises with it, because you're paying the same fixed dollar cost over less time. Fixed-payment math assumes ~21 business days or ~4.33 weeks per month.
Which Revenue-Based Financing Product This Models
Worth settling before you read a result as wrong. This calculator models the small-business and e-commerce version of revenue-based financing — the one priced as a factor rate on the advance, typically between 1.10 and 1.50, repaying over roughly 6 to 18 months. That is what the slider bounds reflect.
It does not model the startup and SaaS version, which is priced as a repayment cap of commonly 1.5 to 3 times the capital raised over two to six years. If you are a software company holding an offer with a 2.5 times cap, that figure sits above the top of the slider by design rather than by error. That version of the product has its own page, and the arithmetic below still applies to it — only the input ranges differ.
How to Read Your Revenue-Based Financing Result
- Total payback. The advance multiplied by the factor rate. This is fixed at signing and is the single most comparable number across offers — more so than any percentage.
- Dollar cost. Total payback minus the advance. The actual price of the money. If the capital cannot generate more than this figure, the offer is not worth taking regardless of how the rate reads.
- Estimated term. How long repayment takes at the revenue and remittance you entered. There is no maturity date on this product — only a total to be met — so this figure moves with your actual sales.
- APR equivalent. The annualized cost implied by the payment schedule, calculated as the internal rate of return on the actual sequence of payments rather than by dividing a fee by a principal. It is an estimate, not a quote, and it will change if your revenue does.
A Worked Example You Can Reproduce
Open the calculator and it loads a $100,000 advance at a 1.30 factor rate: $130,000 total payback, $30,000 cost, about 17.3 months, and an APR equivalent near 36.3%. Every figure on this page can be reproduced by entering the same inputs.
Now change the scenario. A $150,000 advance at a 1.35 factor rate gives a $202,500 total payback and a $52,500 cost. Remitting 11% of a $110,000 monthly revenue base — $12,100 a month — clears it in roughly 16.7 months.
The number worth sitting with is the $52,500. Not the factor rate, not the APR: the dollars. If the $150,000 funds inventory that will generate more than $52,500 of additional margin, this is a straightforward decision. If it is covering a shortfall, no rate framing makes it a good one.
Why the Same Deal Shows Four Different Rates
The table showing the same advance repaid over 6, 12, 18 and 24 months is the most useful thing on this page, and it demonstrates the one property of this product that surprises everybody.
Your dollar cost never changes. Your annualized rate changes enormously. The total was fixed when you signed, so repaying it faster means paying the same dollars over less time — which annualizes higher. Repaying slower spreads the same cost over more months and annualizes lower.
Read that consequence carefully, because it runs opposite to every other financing product: outperforming your revenue forecast makes this capital more expensive in annualized terms, not cheaper. A business that beats its plan and clears the balance in eight months instead of eighteen has paid exactly the same dollars for less than half the time.
This is also why a single advertised APR for revenue-based financing should be treated with suspicion. Most products land somewhere around 8% to 30% effective APR, and weekly-remittance structures can exceed 35% to 40% — but every one of those figures assumes a repayment speed, and yours will be different. A range is honest. A point estimate usually is not. How revenue-based financing is priced covers the pricing structures in full.
Revenue Share or Fixed Payment? It Changes the Answer
The calculator offers both repayment modes because both exist in the market, and the difference is not cosmetic.
A revenue holdback is the true version: a percentage of sales, so the payment falls in a slow month and the payoff date floats. A fixed daily or weekly payment collects the same amount regardless of what you sold, which removes the downside protection that justifies this pricing in the first place.
Run your offer both ways. If your agreement specifies a fixed debit, the flexibility you may think you are buying is not in the contract, and the offer should be compared against fixed-payment alternatives rather than against other revenue-based deals. The mechanics of each mode are worth understanding before you enter anything.
What This Calculator Cannot Tell You
Three honest limitations:
- It is not an offer, a quote, or an approval — from any provider, REIL Capital included. It models market-typical structures. Real terms come from underwriting your actual file.
- It does not know your fees. Origination, administration and closing costs sit outside the factor rate at some providers. Ask for an all-in total and enter that.
- It does not know whether your revenue forecast is right, and the estimated term depends entirely on that. Run your worst recent month as well as your average, and see whether both results are affordable.
One thing worth doing before you use any of these numbers in a negotiation: if you are in California and the offer is $500,000 or less, the provider must state an annual percentage rate alongside any price it quotes you, under a disclosure requirement effective 1 January 2026. Ask for theirs, then compare it against what this calculator produces.
Frequently Asked Questions
How do you calculate the cost of revenue-based financing?
Multiply the advance by the factor rate to get the total payback, then subtract the advance to get the dollar cost. A $150,000 advance at a 1.35 factor rate repays $202,500, so the cost is $52,500. To annualize it you need the repayment schedule as well, because the same dollar cost annualizes differently depending on how quickly your revenue clears the balance.
What is the APR on revenue-based financing?
There is no single APR, because the annualized cost depends on repayment speed. Most products land around 8% to 30% effective APR and weekly-remittance structures can exceed 35% to 40%, but each figure assumes a repayment pace. The meaningful calculation is the internal rate of return on the actual payment schedule, which is what this calculator computes rather than dividing a fee by a principal.
Does repaying revenue-based financing early save money?
No. The total payback is fixed when you sign, so finishing early means paying the same dollars over less time, which raises the annualized rate rather than lowering it. This is why the calculator shows the same advance at four repayment speeds: the dollar cost stays flat while the rate moves substantially.
What factor rate should I expect?
In the small-business and e-commerce market, typically 1.10 to 1.50 times the advance, which is the range the calculator’s slider covers. Below roughly 1.25 is generally the well-qualified end. The startup and SaaS version of the product is priced differently, as a repayment cap of commonly 1.5 to 3 times the capital raised.
Is this calculator an offer from REIL Capital?
No. It is an educational estimate based on market-typical structures, and it is not an offer, a quote, or an approval from any provider including REIL Capital. Terms vary by provider and by underwriting. Use it to compare offers you have received and to understand what a structure costs before you take a call.
Once you have a total in dollars, the decision gets simpler: does the capital earn more than the cost? REIL Capital works through that question across seven financing products, and will point you at a business line of credit instead when the arithmetic favours it. For the structure end to end, start with the revenue-based financing guide. If you would rather compare general funding scenarios across products, the funding calculator covers broader ground.
