Deferred Revenue Amortization Planner
Amortize an upfront payment into clean monthly recognized revenue.
Of the $36,000 collected, $15,000 is recognized revenue after 5 months and $21,000 remains a deferred-revenue liability. Cash in the bank isn't earned revenue yet — recognize it evenly across the 12-month term.
Under accrual accounting (ASC 606 / IFRS 15), upfront payments are a liability until delivered. Straight-line recognition fits most subscriptions; usage-based or milestone contracts differ.
About this calculator
Spread an upfront annual or multi-year payment across the contract term to see monthly recognized revenue and the deferred balance remaining at any point.
Everything runs in your browser — nothing you type is sent anywhere or stored. Use it to sanity-check a plan, pressure-test a channel, or brief a team before you commit budget.