Free Tool
Recoupment Waterfall Calculator
Enter your numbers and see how film revenue flows through the standard recoupment order, line by line, with the running remainder at every step. Off-the-top fees, sales commission, MG recoupment, investor principal, preferred return, then the backend split.
A recoupment waterfall is the agreed order in which money coming back from a film gets paid out. Each position is paid in full before the next one sees a dollar. This tool walks your revenue through a common order so you can see exactly what reaches investors and producers under the terms you type in. Change any input and every line updates.
To investors
$3,912,500
Principal + preferred + backend share
To producers
$312,500
Producer backend share of the remainder
Your numbers
Type your terms. Every line below updates instantly.
Gross receipts flowing back into the waterfall.
Percentage the distributor keeps off the top of total revenue.
Flat amount for marketing, deliverables, prints and advertising, market costs.
Percentage on the amount available after the distribution fee and expenses.
Any minimum guarantee or advance the distributor already paid and recoups from receipts.
The production budget financed by investors. This is the principal they get back.
Percentage on top of returned principal, paid before the backend split.
Investor share of the final remainder. Producers receive the rest.
The waterfall, line by line
Each position is paid from what is left after the position above it.
| Position | Paid out | Remaining |
|---|---|---|
| Total revenueStarting pool entering the waterfall | n/a | $8,000,000 |
| Distribution fee25% of total revenue | $2,000,000 | $6,000,000 |
| Distribution expensesFlat expenses off the top | $750,000 | $5,250,000 |
| Sales agent commission10% of the amount available here | $525,000 | $4,725,000 |
| MG / advance recoupmentRecoupment of the minimum guarantee or advance | $500,000 | $4,225,000 |
| Investor principal recoupmentReturn of the negative cost financed by investors | $3,000,000 | $1,225,000 |
| Investor preferred return20% on the $3,000,000 principal | $600,000 | $625,000 |
| Backend split to investors50% of the $625,000 remaining pool | $312,500 | $312,500 |
| Backend split to producers50% of the $625,000 remaining pool | $312,500 | $0 |
This is a modeling tool. Outputs are arithmetic on the numbers you enter. They are not a prediction of returns or financial advice. The order and terms shown are common conventions, not rules. Your actual waterfall is governed by your specific agreements.
Model this on your real project
Swap these placeholder terms for your actual deal, save your scenarios, and pressure-test the structure before you sign. FILM.FUND's Scenario Engine lets you compare waterfalls side by side against your budget, comps, and capital stack.
How a waterfall works
Revenue rarely reaches filmmakers in the order people expect. It moves through priority positions. First come the costs of getting the film sold and delivered: the distribution fee (a percentage the distributor keeps off the top) and distribution expenses (marketing, deliverables, prints and advertising, market costs). Next, a sales agent commission if a sales agent brokered the deals. Then any minimum guarantee or advancethe distributor already paid gets recouped from receipts. Only after those come the positions filmmakers care about most: return of investor principal(the negative cost or production budget the investors financed), then an investor preferred return, and finally the backend splitof everything left, divided between investors and producers on agreed percentages.
Why the order matters
Two films with identical revenue and identical budgets can return wildly different amounts to investors depending on where the fees sit and how large the advance was. A high distribution fee, heavy expenses, and a large recoupable advance can absorb most of the receipts before principal is even touched. Modeling the order before you sign the deal is how you spot the terms that quietly move money away from the people who financed the film. The percentages and the order in this tool are conventions, not rules. Your actual deal is whatever your agreements say.
The terms you enter
- · Total revenue: gross receipts flowing back into the waterfall.
- · Distribution fee: percentage the distributor keeps off the top.
- · Distribution expenses: a flat dollar amount for marketing, deliverables, and market costs.
- · Sales agent commission: percentage on receipts after the distribution fee.
- · MG or advance: any minimum guarantee or advance that must be recouped.
- · Negative cost: the production budget financed by investors, which is their principal.
- · Preferred return: percentage on top of returned principal, paid before the backend.
- · Backend split: how the final remainder divides between investors and producers.
This is a modeling tool. Outputs are arithmetic on the numbers you enter. They are not a prediction of returns or financial advice. Real waterfalls are governed by your specific contracts, and the order and terms vary by deal. FILM.FUND is a software platform, not a broker-dealer or licensed advisor.