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Factoring cost calculator

Enter the invoice amount (accounts receivable) and the factoring company's fee rate. The calculator works out the cost of factoring.

The rate depends on the factoring company, the payment term, and the buyer's reliability — use the terms from your contract

Result

Factoring cost

Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.

This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Factoring cost = invoice amount × fee rate ÷ 100. The company gets the invoice money right away (minus this fee), instead of waiting for the buyer to pay under normal payment terms — the fee is the price of that speed-up.

In real contracts, the factoring fee often has several components: a fixed percentage for the service and an extra charge per day until the buyer actually pays — this calculator uses just the base rate, entered as a whole if your contract already combines both parts.

To see whether factoring beats an alternative — say, a short-term loan for the same amount — compare this cost against a loan's cost over the same period with the separate factoring vs loan calculator.

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