How Revenue-Based Financing Payments Are Calculated

Key Takeaways:

  • Multiply eligible receipts by the collection percentage—then check for any separate minimum, fixed-payment cap, fees, or balance limit
  • The first multiplication does not always tell you the complete amount due
  • Always start with the correct sales figure—eligible revenue may differ from bank deposits or accounting revenue
  • A ledger prevents surprises—track both what has been collected and what remains due

Start with the Correct Sales Figure

Suppose your contract collects 12% of eligible receipts. For $2,000 in eligible receipts, the calculated collection is $240.

Component Amount
Eligible receipts $2,000
Collection percentage 12%
Collection $240
Critical Point: This is a repayment calculation, not a measure of profit or financing cost.

Why Starting with Bank Deposits Can Mislead

A processor can deduct fees before transferring money. Your eligible receipts could therefore be larger than the amount arriving at the bank.

What You See What It Includes
Bank deposit Eligible receipts minus processing fees, reserves, and financing deductions
Eligible receipts The full amount subject to your financing collection

Action Step: Use the eligible-revenue definition in your agreement—not your bank statement—to calculate collections.


Build a Simple Payment Ledger

Assume:

  • $20,000 advance
  • $3,000 fixed fee
  • 12% collections
  • No minimum is due during these four days
Day Eligible Receipts Collection Remaining Balance
Starting balance $23,000
1 $2,000 $240 $22,760
2 $500 $60 $22,700
3 $0 $0 $22,700
4 $1,500 $180 $22,520

Verification: $4,000 receipts × 12% = $480. $23,000 - $480 = $22,520.

What This Means For You: An ordinary fixed-total example stops collecting when that obligation is satisfied. Do not continue a spreadsheet's percentage deduction beyond the balance.

Add the Actual Payment Checkpoint

A percentage collection can coexist with a minimum. PayPal's U.S. Working Capital guidance, for example, describes a minimum every 90 days, based on the selected loan terms.

Hypothetical 60-Day Requirement

Item Amount
Required minimum $2,000
Eligible collections $1,350
Qualifying manual payment $250
Credited payments $1,600
Shortfall $400

Formula:

Shortfall = max(0, required minimum − eligible credited payments)

Important: If the checkpoint is cumulative, use cumulative payments from the specified start date. If it is periodic, use only credits that the agreement assigns to that period.


Distinguish a Minimum from a Fixed-Payment Cap

Feature Definition Impact on Strong Sales
Minimum The least you must pay over a specified period Collections continue beyond the minimum until the obligation is satisfied
Fixed-Payment Cap Collections stop once the specified amount is met for the period At 12% of $30,000, collections may stop at a periodic amount
Key Point: Stripe explicitly describes this distinction in its documentation. A forecast that treats both as the same will be wrong.

Do Not Calculate Fee Allocation by Guesswork

A $240 collection reduces the obligation, but it does not automatically mean $240 is a deductible expense or $240 of principal. The provider's ledger and accounting treatment determine allocation.

Track the Total Obligation: The balance table tracks only the total obligation. If monthly fees accrue, add those fees on the dates specified.


Check Your Result Against Actual Records

Reconciliation Checklist:

  • Eligible receipts match the agreement's definition
  • Agreed percentage was applied correctly
  • Credited collections match your records
  • Remaining balance matches the provider's statement
  • Pending transactions, refunds, and adjustments are accounted for

Investigate Differences:

  • Pending transactions
  • Refunds
  • Rounding
  • Manual adjustments
  • Multiple sales channels

Next Steps

If You Need To... Read This Guide
Identify eligible receipts What Counts as Revenue?
Plan for a shortfall What You Still Owe in a Slow Month
Understand total cost How Much RBF Really Costs
Compare offers Offer Comparison Worksheet
Review an offer Red-Flag Checklist

Disclaimer: This is an educational guide for U.S. businesses, not legal or financial advice. Your signed agreement governs all calculations. Sources checked September 2026. Numerical examples are hypothetical.