Unrealized potential exists forincreasing accountability and transparency in Chileantertiary education by allocating resources based on achievedresults rather than historical precedence and politicalnegotiation. Against this background, the authors profileapproaches to results-based funding of tertiary education toidentify efficacious finance reform options for Chile.International experience shows that financing by results isnot a ready-made concept, but a broad label that offers amenu of design options. To decipher results-based funding,the authors cover all phases in designing and implementing aresults-based funding system and highlight strengths andweaknesses of concepts, such as taximeter funding,performance contracts, and formula-based allocations.