Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Annualized cost
28.6%
Fee paid
$600
Cash advanced
$17,000
Net received
$19,400
Psst — share this and help Rex grow
One click, a permanent link with your numbers baked in.
How to use this
- 1Enter invoice amount ($).
- 2Enter advance rate (%).
- 3Enter factoring fee (%).
- 4Enter days early.
- 5Read your annualized cost on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
Factoring quotes look small as a flat percentage but are expensive as annualized money. This converts the discount fee into an APR you can compare to a loan.
Worked example
Using the values the calculator loads with:
Inputs
- Invoice amount: 20000 $
- Advance rate: 85 %
- Factoring fee: 3 %
- Days early: 45
Results
- Annualized cost: 28.6%
- Fee paid: $600
- Cash advanced: $17,000
- Net received: $19,400
What each field means
Inputs
- Invoice amount ($)
- The invoice amount used in the calculation, measured in $. Starts at 20000 $ so you have a working example on load.
- Advance rate (%)
- The advance rate used in the calculation, measured in %. Starts at 85 % so you have a working example on load. Accepted range: 50–100 %.
- Factoring fee (%)
- The factoring fee used in the calculation, measured in %. Starts at 3 % so you have a working example on load.
- Days early
- The days early used in the calculation. Starts at 45 so you have a working example on load.
Results
- Annualized cost
- Returned as a percentage and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Fee paid
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Cash advanced
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Net received
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the invoice factoring cost calculator work?
Factoring quotes look small as a flat percentage but are expensive as annualized money. This converts the discount fee into an APR you can compare to a loan. The underlying maths is: APR = fee ÷ advance × 365 ÷ days early.
What do I need to enter?
4 values: invoice amount, advance rate, factoring fee, and days early. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the annualized cost result mean?
It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Invoice Factoring Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/invoice-factoring-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/invoice-factoring-cost" target="_blank" rel="noopener">Invoice Factoring Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Invoice Factoring Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/invoice-factoring-cost) (2026).