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Invoice Factoring Calculator

Free invoice factoring calculator: see the cash advance, fee and effective annual cost of selling an unpaid invoice.

How the invoice factoring calculator works

Enter the invoice amount, the advance rate, the fee per 30 days and how long the customer takes to pay.

Formula

Advance = amount × advance rate. Fee = amount × fee% × (days ÷ 30). Effective annual cost = fee ÷ advance × (365 ÷ days).

Worked example

Example: a 10,000 invoice with an 85% advance and a 2% fee per 30 days, paid in 45 days, costs 300 and gives 8,500 up front.

FAQ

What is invoice factoring?

Factoring means selling unpaid invoices to a finance company for an immediate advance, minus fees. It improves cash flow but can be costly, so compare the effective annual cost before you agree.

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For information only – not financial, tax or legal advice. See our disclaimer.

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