Cash flow
Freight factoring cost calculator.
Enter your monthly volume and the factor's fee. See what factoring costs per load, per month and per mile, and what you pay for getting cash early compared with waiting for your broker.
14 loads a month at $1,800 with a 3% fee and a $5 per-invoice charge costs $59.00 per load, $826.00 a month and $9,912 a year. Against waiting 35 days, the simple annualized rate on the advance is 38.0%.
Your numbers
Result
Method and limits
Formulas. Fee per load = freight bill × fee percent + flat fee per invoice. Monthly cost = fee per load × loads. Advance = bill × advance rate. Reserve returned = bill − advance − fee. Annualized rate = (fee per load ÷ advance) × (365 ÷ days to pay).
Assumptions. Every rate comes from you; this page does not assume what a factor charges. It assumes the whole fee is taken from the reserve when your broker pays, and that the broker pays on the day count you enter. Contracts may use tiered or per-day fees, recourse charges, minimums, or fuel advance fees that this page does not model. For two quoted offers side by side with per-day and per-30-day fee options, use the invoice factoring cost calculator.
This is arithmetic, not financial advice. Nothing you type leaves your browser.
Sources
This calculator is arithmetic on the figures you type in. It uses no third-party numbers, so there is no external source to cite for the maths.
FAQ
How much does freight factoring cost?
It is whatever your contract says, usually a percentage of each invoice plus any flat fees. This page does not state typical rates; enter the ones in your quote.
How do I compare factoring to waiting for the broker to pay?
Compare the fee to the days saved. The annualized figure here turns the fee on the advance into a yearly rate so you can compare it to other financing.
What is the advance rate?
The share of the invoice you receive up front. The rest is held as a reserve and released, minus fees, when the broker pays.
Is this an APR?
No. It is a simple comparison figure and may differ from a regulatory APR disclosure.