Calculator
Invoice Factoring Calculator
See exactly how much you'll receive upfront, what the factoring fees will cost, and what you net when your invoice is paid.
The face value of the invoice you want to factor
Percentage paid to you upfront (typically 70–95%)
% of invoice face value per 30-day period (typically 1–5%)
days (custom)
Factoring Breakdown
You Receive Today
$42,500
85% advance on your invoice
Effective Cost
4.50%
of invoice value
Annualized Rate
42.94%
APR equivalent
Free, no obligation
How invoice factoring fees work
With invoice factoring, you sell an unpaid invoice to a factoring company at a discount. The factor advances you most of the invoice value immediately (the advance rate), then collects the full amount from your customer when the invoice is due. The difference — minus the factor fee — is paid to you as the reserve release.
Factor fees are typically charged as a percentage of the invoice face value for each 30-day period the invoice remains outstanding. A 3% fee on a 30-day invoice is straightforward; on a 60-day invoice it becomes 6% — which is why collecting quickly lowers your cost.
The annualized rate helps you compare factoring against a line of credit or other short-term financing. High annualized rates don't always mean factoring is wrong — it depends on your alternatives and the value of getting cash today.