Factoring calculator
See what lands in your account today
The numbers already in the boxes are examples to show how it works. Replace them with your own.
The share of the invoice the factor keeps.
The share of the invoice paid up front.
Your numbers
$2,150.00 in your account today
- Advance paid today
- $2,150.00
- Factoring fee
- $75.00
- Reserve released later
- $250.00
- Total you receive
- $2,400.00
- Effective cost
- 4.00%
Terms vary by factor: fee schedules, reserve rules and who carries the risk if your customer does not pay. Read your agreement and use the figures it states.
The formula
The advance is the invoice times the advance rate. The fee is the invoice times the factoring percent. Cash today is the advance minus the fee and any flat fees. The reserve, invoice minus advance, is released later once your customer pays.
Total you receive is the invoice minus all fees. Effective cost is those fees divided by the invoice, so flat fees count too.
How to use it
- Enter the invoice amount, then the fee and advance rate from your factoring agreement.
- Add flat fees such as ACH or wire charges if your factor bills them per payment.
- Compare two offers by running both and looking at effective cost and cash today.
Terms vary by factor. Some charge more the longer an invoice is open, and the rules on who covers a non-paying customer differ, so this tool does not assume any. Always go by your own agreement. The numbers in the boxes are examples, not typical rates.
For carriers running 3–10 trucks
Claim a founding spot
$99/mo flat for up to 10 trucks, locked for 12 months (list price $145). Nothing is charged until your factor accepts your first Freight Friend packet.
Claim a founding spot