Invoice Factoring Calculator

man typing on a calculator on a desk

Last Updated April 19, 2024

Interested in invoice factoring but are worried about the costs associated with it? We know that the unknowns of financing can be stressful, so we’ve put together an invoice factoring calculator to help you estimate your cash advances, factoring fees, and cash due to you at the end of the factoring process. Try the calculator below!

How to Use the Factoring Calculator

This invoice financing calculator is meant to make it easier to anticipate the costs of factoring. Follow the steps below to quickly and easily estimate your factoring fees:

  1. Input the value of all the invoices you plan on factoring.
  2. Input the factoring rate (sometimes referred to as the interest rate).
  3. Input the advance rate.
  4. Click calculate.
  5. Review the cash advance you can expect to receive, the factoring fee you can expect to pay, the cash that you can expect to receive once the invoice payments have been collected, and the total amount you would get by the end of the factoring process.

How Much Does Factoring Cost?

The total cost associated with using invoice factoring varies because each provider offers slightly different invoice factoring rates and fee structures. However, the standard factoring rate (often referred to as the interest rate) typically falls between 0.5%-4.5%, with an initial advance rate typically 80-90%, though this can be as high as 99% for businesses in certain industries, such as trucking.

Ready to Start Factoring?

If you’ve calculated your invoice factoring costs and cash advances and you’re ready to start factoring, fill out our free quote form or give us a call today at +1 (205) 607-0811. Our representatives would be happy to discuss how altLINE can help improve your cash flow.