Factoring Cost Calculator

Analyze the true cost of invoice factoring and compare different factoring arrangements to make informed financing decisions.

Trade Finance

Cash Flow

Working Capital

Factoring Cost Calculator

Calculate the true cost of invoice factoring including service fees, interest charges, and effective APR. Compare different factoring scenarios and optimize your working capital strategy with our comprehensive analysis tools.

Invoice Details

Enter your invoice information and factoring parameters

Avg. Invoice Amount ($)

Number of Invoices

Advance Rate (%)

Factoring Fee (%)

Collection Period (Days)

Interest Rate (Annual %)

Factoring Type

Additional Fees ($)

Include processing, wire transfer, and other ancillary fees

Factoring Types

Recourse Factoring

You buy back unpaid invoices

Advance:80-90%

Fee Range:1-3%

Non-Recourse Factoring

Factor assumes credit risk

Advance:75-85%

Fee Range:2-5%

Spot Factoring

Factor single invoices

Advance:70-85%

Fee Range:3-6%

Maturity Factoring

Payment on fixed date

Advance:75-90%

Fee Range:1.5-3%

Advance

$425,000

85% of $500,000

Reserve

$75,000

Held until collection

Total Cost

$19,038

3.81% of invoice value

Effective APR

36.33%

Very High rate

APR Assessment

Excellent (0-15%)Fair (20-25%)High (35%+)

High factoring costs - explore alternatives or renegotiate terms

Cost Breakdown

Service/Discount Fee

2.5% of invoice value

$12,500

Interest on Advance

12% annual for 45 days

$6,288

Additional Fees

Processing, wire transfers, etc.

$250

Total Factoring Cost

$19,038

Cash Flow Summary

Total Invoices$500,000

Immediate Cash (Advance)$425,000

Reserve Held$75,000

Less: Total Fees-$19,038

Net Cash Received$480,962

Effective Annual Cost

The effective APR of 36.33% reflects the true annualized cost of factoring your invoices. This rate helps you compare factoring against other financing alternatives like bank loans, lines of credit, or merchant cash advances.