Revenue Quality Score: Recurring vs One-time vs Concentrated Revenue
Not all revenue is worth the same to investors. Score yours on how recurring, diversified, profitable, sticky and collectable it is, and see which factor drags your valuation multiple down.
What the Revenue Quality Score does
- โ Score out of 100 and grade
- โ Recurring share and contract length
- โ Top 1 and top 5 concentration
- โ Margin, NRR and DSO
- โ Factor breakdown
How to use the Revenue Quality Score
- STEP 1Enter your numbersType the figures you know. Every field starts with a realistic example so you can see how it works.
- STEP 2Read the result instantlyResults, tables and the plain-English explanation update as you type. No submit button, no login.
- STEP 3Test scenariosChange one assumption at a time (valuation, growth, dilution, exit) to see what really moves the outcome.
- STEP 4Share or saveCopy the summary, send it on WhatsApp or print to PDF for your co-founders, board or investment committee.
Why revenue quality drives valuation multiples
Two companies with the same โน10 Cr revenue can be valued very differently: one with 90% subscription revenue across 500 customers, the other with project revenue from three clients. Predictability is worth paying for.
Slow collections (high DSO) consume cash and can signal weak customer commitment. Tightening payment terms and automating reminders improves both quality and runway.
Frequently asked questions
What is revenue quality?
How predictable, diversified, profitable and collectable a companyโs revenue is. It strongly affects valuation multiples.
What is DSO?
Days sales outstanding: the average number of days it takes to collect payment after invoicing.
How can I improve revenue quality?
Move customers to annual or recurring contracts, reduce concentration, increase gross margin and speed up collections with automated reminders and AutoPay.
Is this tool free? Do I need to sign up?
Yes. It is completely free, needs no login and has no usage limit. FastFee builds payment collection software; these startup and investor tools are free resources for founders, angels and fund managers.
Is my data private?
Yes. Everything you type stays in your own browser on this device (local storage). Nothing is uploaded to FastFee. Export or print a copy if you need to keep it.
Use it together with
Extend your runway by getting paid faster
- Automatic WhatsApp and SMS payment reminders before and after due dates
- UPI, payment links and AutoPay with live paid status and auto receipts
- Built for subscription, fee and installment businesses across India