Fintech Credit, SaaS/E-Commerce Capital & Non-Dilutive Debt
Revenue-Based Financing (RBF) Royalty Sweep & APR Formula
Calculate Revenue-Based Financing Total Repayment Cap ($k), Monthly Gross-Revenue Sweep ($k), Months to Payoff Cap, and Nominal Annualized Fee Rate (%).
Fast sales growth is an RBF borrower trap—paying off a 1.32x cap in 4 months costs 96% annualized!
Revenue-Based Financing (RBF) advances non-dilutive growth capital P in exchange for a fixed Repayment Multiple Cap M_cap (e.g., 1.32x = 32% flat factor fee) collected via a fixed percentage sweep s_rev of monthly gross receipts! Unlike a term loan (where paying off early saves interest), an RBF contract locks in the entire dollar fee P * (M_cap - 1) regardless of how fast you repay! Consequently, Payoff_Months = (P * M_cap) / (Monthly_Rev * s_rev), and Nominal Annualized Fee Rate = (M_cap - 1) * (12 / Payoff_Months) * 100 (with true amortizing average-balance IRR roughly ~1.8x–2.0x higher still)! The faster your product grows, the higher your annualized cost of capital climbs!
Verify on a $500.00k E-Commerce Inventory Advance—Advance_Principal = $500.00k (B2), Repayment_Cap_Multiple = 1.32x (B3 -> Total Repayment Cap = $660.00k in E2; $160.00k fixed fee), Monthly_Gross_Revenue = $825.00k/mo (B4), and Revenue_Sweep_Pct = 0.10 (10.0%, B5 -> Monthly Sweep = $82.50k/mo in E3): Payoff Duration equals 660 / 82.50 = 8.00 months (E4), making Nominal Annualized Fee Cost 0.32 * (12 / 8.00) * 100 = 48.00%/yr (E5)!
| RBF Facility Cost KPI ($500k Advance, 1.32x Cap, $825k/mo Rev @ 10% Sweep) | Formula | Verified Output |
|---|---|---|
| Total Repayment Cap ($k) | Advance_Principal_k * Cap_Multiple | $660.00k |
| Monthly Royalty Sweep ($k/mo) | Monthly_Gross_Revenue_k * Sweep_Pct | $82.50k/mo ($165.00k @ $1.65M) |
| Months to Payoff Cap (mos) | Total_Repayment_Cap_k / Monthly_Sweep_k | 8.00 mos (4.00 mos @ $1.65M) |
| Nominal Annualized Fee Rate (%) | (Cap_Multiple - 1) * (12 / Payoff_Mos) * 100 | 48.00% (96.00% @ 4-Mo Payoff!) |
RBF Payoff Duration & Growth-Sensitive Annualized Cost Formula
Validate Principal > 0, Cap_Multiple in (1.02, 2.50], Monthly_Revenue > 0, and Sweep_Pct in (0.01, 0.35]!
=LET(pr_k, B2, cp_m, B3, rv_m, B4, sw_p, B5, IF(OR(pr_k <= 0, cp_m <= 1.02, cp_m > 2.5, rv_m <= 0, sw_p <= 0.01, sw_p > 0.35), "Invalid RBF Facility Input", LET(sw_k, rv_m * sw_p, mo_p, (pr_k * cp_m) / sw_k, ROUND((cp_m - 1) * (12 / mo_p) * 100, 2))))Viral Holiday Q4 Sales Doubling Trap Check (Set Monthly Revenue = $1,650k)
Double Monthly_Gross_Revenue B4 from $825.00k to $1,650.00k during a breakout Q4 holiday launch: Monthly Sweep E3 doubles to $165.00k/mo, Payoff Duration E4 halves to 4.00 months, and Nominal Annualized Fee Cost E5 doubles from 48.00% to 96.00%!
=IF(ISTEXT(E5), E5, ROUND((B2 * B3) / (B4 * B5), 2))Try the example
Use the original values or change them to test your understanding.