Invoice Factoring Calculator
Estimate cash flow and profit impact of factoring fees.
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70% (Min)90% (Max)
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15 Days90 Days
Understanding Factoring Results
Factoring advances immediate cash and handles the collection.
Advance Amount
Funds received immediately.
$0.00
Reserve Held
Held back until paid.
$0.00
Total Factoring Fee
Total cost.
$0.00
Profitability Analysis
Total Gross Profit ($)
Before factoring.
$0.00
Actual Net Profit ($)
After factoring fee.
$0.00
**Note:** Simplified model. The actual Net Profit determines if factoring is beneficial to your margin.
How It Works
You enter five key pieces of information:
- Invoice Amount: The total value of the invoice you’re owed.
- Gross Profit Margin: Your profit percentage on that invoice before any fees.
- Factoring Advance Rate: The percentage of the invoice you get in cash upfront (usually 70-95%).
- Monthly Factoring Fee: The percentage the factoring company charges for the service.
- A/R Period: How many days you expect it will take your customer to pay.
As you adjust these numbers using the sliders and input fields, the calculator instantly updates the results on the right. It shows you the crucial figures:
- Advance Amount: The cash you get immediately.
- Reserve Held: The amount the factor holds until your client pays.
- Total Factoring Fee: The total cost of the service.
- Actual Net Profit: Your final profit after paying the factoring fee.