Invoice Factoring Calculator: Your Real Cost
Enter a real month rather than a single invoice. Minimums and transfer fees are where quotes diverge.
Most factoring calculators multiply one invoice by one rate. That is the number the salesperson already gave you. This one models a month.
Assumes the discount rate accrues per 30-day period and is pro-rated beyond it. Many agreements instead step up in full periods, which costs more. Confirm which applies to your quote.
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Reading the result
The number to compare between quotes is effective annual cost as a percentage of revenue, not the headline rate. A 2% rate with a $1,500 monthly minimum on $30,000 of invoicing is a 5% product. Run both quotes through a slow month as well as a normal one.
Then check the contract
Cost modelling only matters if you can leave. Before signing, price the exit: term length, notice period, termination fee and UCC release →