Revenue-based finance calculator

How the cost and the repayment time are worked out

Revenue-based finance fixes the cost the same way a merchant cash advance does, but collects it monthly from all revenue rather than daily from card takings. The funder multiplies the advance by the repayment cap to fix the total: £100,000 at a 1.35x cap means £135,000 back, a fixed £35,000 cost. Each month you pay the revenue share, a fixed percentage of that month's revenue, until the cap is reached. The calculator applies your share to your average monthly revenue to estimate the payment in a typical month, then runs that payment against the cap to estimate how long repayment takes; on the defaults, 8% of £80,000 is £6,400 a month, clearing £135,000 in around 22 months. The effective annual cost then annualises the fixed cost over that estimated time, which is the only fair way to set a capped product against a loan quote. Two things move the real outcome around this estimate: growth shortens the term (and raises the effective annual rate), and a slow patch stretches it (and lowers the rate, while costing you the same cash). Every figure is indicative; the funder sets real terms from your verified revenue data.

The cap against APR: the honest comparison

A 1.35x cap looks like 35%, and over a single year it would be. But the repayment time is set by your revenue share, not by a calendar, and that changes the true annual cost in both directions.

Repay quickly and the rate climbs. If your revenue grows and the share clears the cap in 14 months instead of 22, you have paid the same £35,000 for 14 months' use of the money, which annualises to roughly 30% rather than 19%. Success makes the borrowing more expensive per year, the opposite of a loan, where growth lets you settle early and stop the interest.

Repay slowly and the rate falls, but the cash cost never does. A flat patch stretches the term and flatters the annualised figure, yet the £35,000 leaves your business either way.

That is the honest frame for the product: you are paying a fixed premium for payments that flex with trading and for money that arrives in days on the strength of your revenue data, without giving up equity. For a business with lumpy or fast-growing revenue that premium can be worth it; for a business with steady cash flow that could service a fixed repayment, a term loan at 8% to 25% APR usually does the same job for materially less. The calculator shows the effective annual cost so you can make that call on numbers, not on how the quote was framed.

What actually drives the cap and the revenue share

Revenue-based funders underwrite your revenue data more than your balance sheet, which is why offers come back in days. The main levers are:

Revenue quality. Contracted, recurring income, SaaS subscriptions, memberships, repeat ecommerce, earns the keenest caps, because the funder can model next month's collections with confidence. Lumpy project income prices up or is declined.

Growth and its consistency. A business growing steadily month on month repays faster and can support a larger advance; erratic growth widens the cap.

Margins and churn. The funder checks that the revenue share leaves room for your costs, and for subscription businesses, that churn is not eating the book the advance is secured against.

Customer concentration. Revenue dominated by one or two customers is riskier than a spread book and prices accordingly.

Data access. Offers are built from live connections to Stripe or your payment processor, Open Banking and your accounting software. Clean, connectable data is not just a convenience; it is what unlocks the better end of the pricing range.

The table below gives indicative ranges by profile; they are illustrative only, and the offer you receive is the funder's alone.

How much you can raise, and what funders look for

UK revenue-based finance typically runs from about £10,000 to £2 million, sized at roughly three to six months of revenue, or up to around a third of annual recurring revenue for subscription businesses, with the share set so repayment lands inside six to eighteen months. Because the underwriting is data-driven, the process is fast: connect your payment processor, bank and accounting software, and offers commonly come back within days. Funders want a UK limited company, usually six to twelve months of trading history, around £10,000 or more of monthly revenue, and margins that comfortably absorb the revenue share; personal guarantees are sometimes lighter than on a term loan but are still common, so read the agreement. The product's usual home is funding marketing spend, stock or growth where the return arrives inside the repayment window, and its pitch against venture capital is real: you keep your equity. Because we place these deals rather than fund ourselves, we match your revenue profile to funders whose appetite fits your sector and size. Any figure discussed before a formal offer is indicative; the advance, the cap and the share are the funder's decision.

How we help you get a sharper deal

A handful of things genuinely move the price on revenue-based finance, and our job as your broker is to line them up before a funder sees your data.

We take it to the right funder first. The UK market splits by specialism: some funders live on SaaS metrics, others on ecommerce, others on subscription consumer businesses, and their caps and shares differ widely for the same revenue. We hold that criteria detail across our panel, so we focus your case on the funders most likely to price your revenue quality keenly.

We structure the deal to price well. We will size the advance to the job rather than the maximum on offer, set the revenue share so a quiet quarter still works, and present your growth, churn and concentration the way an underwriter reads them.

We tell you straight what is realistic. The effective annual cost of a capped product is high when repayment is quick, and for a business with steady cash flow a term loan is often materially cheaper for the same money. We will show you both, honestly, and if the flexibility is worth the premium for your business, we will get you the sharpest cap we can. It costs nothing to have us model it, and there is no obligation. Send us your numbers and we will come back with indicative terms from funders whose criteria fit.