Invoice factoring calculator
Estimate your advance, reserve, fee, and reserve release on a real invoice. Change the numbers to see why days outstanding drives the total cost more than the headline rate.
Directional illustration only. Not a quote or commitment to fund.
Face value of one invoice, before any fees.
Percent of the invoice funded up front. Typical range: 80% to 95%.
Discount fee charged on the invoice face value for each 30-day period.
How long the invoice stays open before the buyer pays the factor.
Used only to estimate monthly volume and cost. Set to 1 to see a single invoice.
Advance you receive
$108,000
90.0% of $120,000
Reserve held back
$12,000
Released when the buyer pays, less the fee
Estimated factoring fee
$2,400
2.0% per 30 days × 1 periods
Reserve released to you
$9,600
After the fee is deducted from reserve
Effective cost on this invoice
2.0%
$2,400 fee ÷ $120,000 invoice
Estimated monthly volume
$600,000
Estimated monthly factoring cost
$12,000
This calculator shows a directional illustration only. Your actual advance rate, fee, and reserve release are set by the funding institution during underwriting and depend on your customers, credit, revenue, and industry. Anyone promising a specific number before seeing your file is guessing.
How the math works
- Advance = invoice amount × advance rate. This is what lands in your account first.
- Reserve = invoice amount − advance. Held until your customer pays the factor.
- Fee = invoice amount × fee per 30 days × periods outstanding. Each 30 days is one period.
- Reserve released = reserve − fee. This is the remainder sent to you after the customer pays.
- Effective cost = fee ÷ invoice amount. The simplest way to compare offers on equal terms.
Want the ranges first? See current factoring rates and advance bands.
Frequently Asked Questions
It estimates the advance you receive, the reserve held back, the factoring fee, and the reserve released to you after the buyer pays. It also shows a monthly run-rate if you factor multiple invoices of the same size.
No. The calculator is a directional illustration. Your actual advance rate, fee, and reserve release are set by the funding institution during underwriting and depend on your customers, credit, revenue, and industry.
The fee is the invoice face value multiplied by the fee per 30 days, multiplied by the number of 30-day periods the invoice stays outstanding. A 75-day invoice at 2% per 30 days pays roughly three periods of fee.
The reserve is the portion of the invoice the factor holds until your customer pays. When payment arrives, the factor returns the reserve minus its fee. If the advance rate is 90%, the reserve is 10% of the invoice face value.
Factoring fees are time-based. A low headline rate stretched over 90 days can cost more than a higher rate paid off in 30 days. Slow-paying customers are usually the biggest driver of total factoring cost.
Often yes. Factoring approvals focus on your customers' ability to pay, not your own credit score or time in business. That is why it is a common first funding tool for newer manufacturers with creditworthy B2B or B2G buyers.
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