The conversion formulas
A year has about 250 to 260 business days once weekends and bank holidays are removed, so a month averages about 21. A year has 52 weeks, so a month averages about 4.33 weeks. Use the multiplier that matches how your agreement schedules debits: business days, calendar days, weeks or every two weeks.
- Business-day payment: × about 21
- Calendar-day payment (every day, including weekends): × about 30.4
- Weekly payment: × about 4.33
- Every-two-weeks payment: × about 2.17
Example: a $250 business-day payment is about $5,250 a month; a $1,200 weekly payment is about $5,200. The table converts several amounts. Illustrative figures only.
Business days, holidays and what your contract says
The multiplier gives an average, but actual months vary. A month with 23 business days takes more debits than a month with 20, and holidays shift debits. Your agreement states exactly which days payments are taken and what happens on bank holidays, so read it and plan for the heaviest months, not only the average.
Example: a $400 business-day payment is $9,200 in a 23-day month and $8,000 in a 20-day month, a $1,200 swing with no change in your sales. If your cash is tight, plan around the higher figure. Illustrative only.
| Payment | Schedule | Multiplier | Approx. monthly equivalent |
|---|---|---|---|
| $200 | Business days | × 21 | $4,200 |
| $400 | Business days | × 21 | $8,400 |
| $600 | Business days | × 21 | $12,600 |
| $1,000 | Weekly | × 4.33 | $4,330 |
| $2,500 | Weekly | × 4.33 | $10,825 |
Converting a percentage-of-sales remittance
When the remittance is a percentage of sales, the monthly figure equals that percentage times the sales it applies to, usually card sales or deposits. Because it moves with volume, calculate it for an average month and for your slowest month so you know the range.
Monthly remittance = remittance percentage × monthly sales subject to remittance
Example: an 8 percent remittance on $75,000 of monthly card sales is $6,000. In a $50,000 month it drops to $4,000, and in a $95,000 month it rises to $7,600. The total owed does not change, so slow months extend the term. Illustrative only. See revenue-based financing.
Compare the monthly figure with profit, not revenue
A monthly payment looks small next to revenue and much larger next to the cash your business actually keeps. Compare it with monthly cash left after cost of goods, payroll, rent, taxes and other payments. That share, not the percentage of revenue, tells you whether the payment is comfortable.
Example: an $8,400 monthly equivalent against $140,000 of revenue is 6 percent, which sounds light. But if the business keeps $15,000 a month after all costs, the payment takes 56 percent of it. Illustrative figures. Work through your own in how much revenue can safely go to payments.
Add up every payment in the same terms
If you carry more than one obligation, convert each one to a monthly figure and add them together before taking on anything new. Mixed schedules hide the total: a daily debit, a weekly debit and a monthly equipment payment can each look manageable while together taking most of your monthly cash.
Example: a $1,200 monthly equipment payment, a $250 business-day payment (about $5,250) and a $500 weekly payment (about $2,165) add up to about $8,615 a month. Illustrative only.
From monthly figure to total cost
The monthly equivalent tells you whether you can carry the payment. It does not tell you what the funding costs. For that, multiply the payment by the total number of payments, subtract the cash you received after fees, and divide by the months in the term for cost per month.
Example: 126 business-day payments of $400 total $50,400. If $42,000 was received after fees, the total cost is $8,400, or about $1,400 per month over six months. Illustrative only. The full method is in the true-cost worksheet.
Frequently asked questions
How many business days are in a month?
Most months have 20 to 23 business days, averaging about 21 once weekends and bank holidays are removed. The exact count depends on the month and on which days your agreement treats as debit days, so check your contract and plan for the months with the most debits.
Do daily debits come out on weekends or holidays?
Many daily schedules debit on business days only, but some agreements differ, and holiday handling varies. Some push a skipped debit to the next business day, which can mean two debits at once. Your agreement states the schedule, so read it and ask the funder if it is unclear.
Why multiply weekly payments by 4.33?
A year has 52 weeks and 12 months, and 52 divided by 12 is about 4.33. Multiplying by 4 understates the monthly figure, because most months contain a few extra days beyond four full weeks. Some months will include five weekly debits, so plan for those months too.
Should I compare the monthly figure with revenue or profit?
Compare it with the cash your business keeps each month after cost of goods, payroll, rent, taxes and existing payments. Revenue hides how much is already spoken for. A payment that is a small share of revenue can take more than half of the cash actually left over.
How do I convert a percentage-of-sales remittance?
Multiply the remittance percentage by the monthly sales it applies to, usually card sales or deposits. Calculate it for an average month and your slowest month. The amount will move with sales, while the total owed stays fixed, so slower months mean a longer repayment period.
Know your monthly number first
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Updated September 14, 2026 · Roifunder Funding Team