Invoice Factoring Cost Calculator
What selling your invoices really costs.
Enter your values
Enter the invoice value in $.
Enter the advance rate in %.
Enter the factoring fee in % per 30 days.
Enter the days until the customer pays in days.
Enter the admin or service fee in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Cash advanced now
- $42,500.00
- Total factoring cost
- $2,125.00
- Net amount you receive
- $47,875.00
- Rebate paid on collection
- $5,375.00
- Cost as a share of the invoice
- 4.25%
- Effective annual rate
- 40.6%
Quick answer
Factoring cost = discount rate × invoice value per period held, and because periods are short the effective annual rate is often 20–60%.
Effective APR = fee ÷ advance × (365 ÷ days)
At a glance
| What it does | What selling your invoices really costs. |
|---|---|
| Category | Business |
| Inputs needed | Invoice value, Advance rate, Factoring fee, Days until the customer pays, Admin or service fee |
| Main output | Cash advanced now |
| Formula | Effective APR = fee ÷ advance × (365 ÷ days) |
| Cost | Free — no sign-up, no download |
How to use the Invoice Factoring Cost Calculator
- 1Enter the invoice value and the advance rate offered.
- 2Enter the fee per 30 days and how long the customer usually takes to pay.
- 3Add any admin fee per invoice.
Inputs explained
- Invoice value($)
- Enter the invoice value in $.
- Advance rate(%)
- Enter the advance rate in %.
- Factoring fee(% per 30 days)
- Enter the factoring fee in % per 30 days.
- Days until the customer pays(days)
- Enter the days until the customer pays in days.
- Admin or service fee($)
- Enter the admin or service fee in $.
Worked example
Using the values the calculator loads with:
Inputs
- Invoice value50000 $
- Advance rate85 %
- Factoring fee2.5 % per 30 days
- Days until the customer pays45 days
- Admin or service fee250 $
Results
- Cash advanced now$42,500.00
- Total factoring cost$2,125.00
- Net amount you receive$47,875.00
- Rebate paid on collection$5,375.00
- Cost as a share of the invoice4.25%
- Effective annual rate40.6%
Frequently asked questions
Is factoring expensive?
Per invoice it looks cheap, but annualised it is usually 20–60%. It is a cash-flow tool for growth, not a substitute for a line of credit.
What is recourse factoring?
With recourse, you repay the factor if the customer never pays. Non-recourse costs more but transfers the credit risk.
What do I need to enter into the Invoice Factoring Cost Calculator?
Just 5 values: invoice value, advance rate, factoring fee, days until the customer pays, admin or service fee. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Invoice Factoring Cost Calculator work out the answer?
Factoring cost = discount rate × invoice value per period held, and because periods are short the effective annual rate is often 20–60%. It applies the formula Effective APR = fee ÷ advance × (365 ÷ days) and shows the working so you can check each step by hand.
Is the Invoice Factoring Cost Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.