Financing
Invoice factoring cost calculator.
Type in the terms from two factoring quotes and see what each one puts in your account now, what comes back later, what it costs in dollars, and what that cost works out to as a yearly rate.
Your invoice and offers
Comparison
Method and limitations
Formulas: advance = invoice × advance rate. Fee = fee rate × the amount it applies to (invoice value or advance), multiplied by 1 for a flat fee, by the number of 30-day periods (days ÷ 30, rounded up) for a per-30-days fee, or by the number of days for a per-day fee. Total cost = fee + admin and wire fees. Reserve released later = invoice − advance − total cost. Cost as a percent of the invoice = total cost ÷ invoice. Effective annualized rate = (total cost ÷ advance) × (365 ÷ days).
This is not an APR. The annualized figure is a simple rate for comparing the two quotes you typed in. It is not the “estimated annual percentage rate” a financer must disclose. In California, DFPI's commercial financing disclosure rules (PRO 01-18, effective December 9, 2022) require factoring disclosures to show an estimated APR calculated under the regulation's own method, plus the finance charge, and to state the payment-timing assumption used. See the DFPI California Financing Law regulations page and the final regulation text (sections 912 and 940–943). Your quote's disclosure controls over the figure on this page.
Assumptions: every rate and fee is what you enter; none are looked up or assumed. All fees are settled out of the reserve when your customer pays, and your customer pays on the day count you enter. Real contracts may add rebates for early payment, fees on late payment, recourse charges, or minimum volumes that this page does not model. A negative reserve release means the fees exceed the reserve. Everything is calculated in your browser; nothing is sent anywhere. This is arithmetic, not financial advice.