Free tool
Invoice factoring cost calculator.
See what you would keep after fees on a factored invoice. Change the advance rate, fee and payment time to see how slow-paying customers change the cost.
Estimate your factoring cost.
Estimated result
- Paid to you up front
- $9,000
- Reserve held back
- $1,000
- Total fee (2 periods)
- $600
- You keep after fees
- $9,400
- Approx. annualized cost
- 54%
Illustrative only. Real pricing depends on the provider, your customers’ credit, volume and add-on fees, and is not an offer or quote.
Compare real optionsFAQ
About the calculator.
How do you calculate the cost of invoice factoring?
Multiply the invoice amount by the factor fee for each fee period the invoice is outstanding, then subtract the total from the invoice. For a $10,000 invoice with a 3% fee per 30 days paid in 45 days, there are two periods, so the fee is $600 and you keep $9,400.
Why does the annualized cost look so high?
Factoring is a short-term product. A 3% fee for 30 days looks small, but annualized it is much higher than a bank loan. Factoring is usually chosen for speed and access, so compare the total dollars against the alternatives for your situation.
What is a reserve in factoring?
The reserve is the part of the invoice not advanced up front. It is released to you after your customer pays, minus the factor’s fees.
Does this calculator include every possible fee?
No. It models the discount fee only. Application, ACH or wire, minimum volume and termination fees can add to the cost, so ask providers for every fee in writing.
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Truidian is a business solutions company, not a lender or factoring company. Results are illustrative estimates, not offers or quotes. Approval, rates and terms are set by participating providers and are not guaranteed.