Invoice Factoring Fee Calculator
Estimate how much cash you get from a factored invoice and the total fee in dollars.
See the net advance, fee, and reserve release on a factored invoice. Useful when comparing factoring offers or deciding whether the cash is worth it.
Your details
The face value of the invoice being factored.
Percent of the invoice paid upfront.
Factoring fee for each 30-day period.
How long the invoice is expected to remain unpaid.
Result
Cash advanced immediately.
- Total factoring feePro-rated fee for the time outstanding.
- $150.00
- Reserve balance after the feeWhat remains after advance and fee. If this is negative, the fee is larger than the reserve and that amount is owed back to the factor rather than paid out.
- $850.00
About this tool
How to Calculate Invoice Factoring FeesLearn the simple math behind invoice factoring fees, upfront cash, and reserve release before you use the calculator.
Free download
Invoice Factoring Deal WorksheetFill this sheet out to compare factoring offers and see your net cash from one invoice.
Free, no email required — print it or save it as a PDF.
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Invoice Factoring Fee Calculator infographicThe key numbers as one image — free to save, share, or embed on your own site with credit.
How this is calculated
This tool calculates the upfront cash from an invoice factoring deal using the invoice amount, advance rate, factoring fee rate, and days outstanding. The rates are entered as percentages, so they are divided by 100 first: the fee is invoice amount × fee rate × days outstanding ÷ 30 ÷ 100, and the upfront cash is invoice amount × advance rate ÷ 100. It assumes a 30-day billing month, which is a common way factoring quotes are presented. If your provider uses weekly pricing, minimum fees, or additional wire/processing charges, those are excluded here. The reserve release is shown as the remainder after the advance and fee. If that remainder is negative, it means the fee is larger than the reserve and that amount is owed back to the factor rather than paid out. If the reserve is held back until the customer pays, that timing is not modeled; this tool is about the dollar amounts, not cash-flow timing.
Common questions
- Does this include hidden factoring charges?
- No. It shows the core advance and pro-rated fee only. Minimum fees, wire fees, credit checks, and late-payment charges are excluded.
- Why use 30 days?
- Many factoring quotes are expressed as a monthly rate. If your offer uses a different period, convert it before comparing.
Take it further with AI
Copy this into ChatGPT or Claude with your own numbers filled in. It hands over the figures this calculator worked out, so the answer is built on real arithmetic instead of a guess.
I used the Invoice Factoring Fee Calculator at https://www.bfcbrilliance.com/tools/invoice-factoring-fee-calculator.
What I entered:
- Invoice amount ($): ___
- Advance rate (%): ___
- Fee rate per 30 days (%): ___
- Days outstanding (days): ___
What it calculated:
- Upfront cash received: ___
- Total factoring fee: ___
- Reserve balance after the fee: ___
Use those figures as given — they are already worked out, so please don't recalculate or estimate your own. Help me turn them into a plan: what to buy or do, in what order, roughly what it should cost, and the mistakes people most often make with this job.
Keep this general and do not give financial advice — flag where I should talk to a qualified adviser.Last updated
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