How do I calculate how much business funding I need?

To calculate how much business funding you need, subtract your actual monthly revenue from your fixed monthly costs to find your monthly cash shortfall. Multiply that shortfall by the number of months you need to bridge. Add a 15-20% buffer for unexpected expenses. The result is your recommended funding amount. This calculator does all of that automatically based on your inputs.

What is a revenue gap in business?

A revenue gap is the difference between the revenue a business expects (or historically generates) and its actual current revenue. When the revenue gap is large enough that actual revenue no longer covers fixed operating costs, a cash shortfall results. Business funding, such as a merchant cash advance, can bridge this shortfall while the business recovers or grows into its revenue potential.

How much does a merchant cash advance cost to bridge a revenue gap?

The cost depends on the advance amount and factor rate. A $20,000 advance at a 1.25 factor rate costs $5,000 total (the advance × factor rate = total repayment). The daily payment would be approximately $154 on a standard 130-business-day term. Use the Revenue Gap Calculator above to calculate your specific recommended amount and estimated cost based on your actual numbers.

What if my actual funding need exceeds what I entered?

Enter your best estimate. MCA advance amounts are typically 100-150% of your average monthly deposits, not solely based on what you request. Submit your application and the funder will make an offer based on your revenue. You can accept, negotiate, or decline any offer.

Does the revenue gap calculator show me what I actually qualify for?

No. The calculator estimates what you might need based on the numbers you enter. Actual MCA offers are based on your monthly bank deposits, typically 100-150% of one month's average. Submit an application to see a real offer based on your actual revenue.

Revenue Gap Calculator: How Much Funding?

Your Revenue & Expenses

Expected Monthly Revenue

What your monthly revenue normally is, or what you projected.

Actual Monthly Revenue (right now)

Your actual average monthly revenue over the last 6 months.

Monthly Fixed Costs (rent, payroll, utilities, debt payments)

How Many Months Do You Need to Bridge?

How long until you expect revenue to recover or the situation to improve.

Estimated Factor Rate (for payment estimate)

Your Funding Analysis

Monthly Revenue Gap -

Monthly Cash Shortfall -

Bridge Period 3 months

Recommended Funding Amount -

Estimated Total Repayment -

Estimated Daily Payment -

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How the funding recommendation is calculated Total gap = monthly shortfall × bridge months, plus a 20% buffer for unexpected costs. The recommended amount also accounts for MCA minimum ($10,000) and maximum ($1,000,000) funding limits.

A shop counter with a tablet point of sale, a card reader and a handwritten tips jar, while a man counts banknotes beside a chilled display case — The revenue side of the calculation is takings like these: what actually lands, week by week, not what a good month suggests.

Where the Default Example's Gap Comes From

Actual revenue falls $2,000 short of fixed costs each month: the monthly cash shortfall this calculator bridges.

A butcher counter with refrigerated cases of packaged meat, a customer leaning on the counter and a staff member working behind it — A half empty case is what a revenue gap looks like on the floor. Sizing the advance to the shortfall, not to the maximum offered, is the whole point of this tool.

How the Recommended Funding Amount Is Built

Know your number. Apply in 10 minutes.

Bring your 6 consecutive months of bank statements and the funding amount from your calculation above.

Apply for Funding →

Review begins as soon as your file is complete. 500+ credit score accepted.

MCA Payment Calculator → Working Capital Calculator → Check Fundability Score →

Revenue Gap Calculator FAQ

How do I calculate how much business funding I need?: To calculate how much business funding you need, subtract your actual monthly revenue from your fixed monthly costs to find your monthly cash shortfall. Multiply that shortfall by the number of months you need to bridge. Add a 15-20% buffer for unexpected expenses. The result is your recommended funding amount. This calculator does all of that automatically based on your inputs.

What is a revenue gap in business?: A revenue gap is the difference between the revenue a business expects (or historically generates) and its actual current revenue. When the revenue gap is large enough that actual revenue no longer covers fixed operating costs, a cash shortfall results. Business funding, such as a merchant cash advance, can bridge this shortfall while the business recovers or grows into its revenue potential.

How much does a merchant cash advance cost to bridge a revenue gap?: The cost depends on the advance amount and factor rate. A $20,000 advance at a 1.25 factor rate costs $5,000 total (the advance × factor rate = total repayment). The daily payment would be approximately $154 on a standard 130-business-day term. Use the Revenue Gap Calculator above to calculate your specific recommended amount and estimated cost based on your actual numbers.

What if my actual funding need exceeds what I entered?: Enter your best estimate. MCA advance amounts are typically 100-150% of your average monthly deposits, not solely based on what you request. Submit your application and the funder will make an offer based on your revenue. You can accept, negotiate, or decline any offer.

Does the revenue gap calculator show me what I actually qualify for?: No. The calculator estimates what you might need based on the numbers you enter. Actual MCA offers are based on your monthly bank deposits, typically 100-150% of one month's average. Submit an application to see a real offer based on your actual revenue.

Revenue Gap Calculator