Invoice Finance Cost Calculator
Instantly calculate the true cost of invoice finance. Work out your advance amount, service fees, discount charges and net proceeds before you commit.
Calculate Your Finance Cost
Enter your invoice details below to get an instant breakdown of your advance amount, total finance cost and net proceeds after fees.
Cost Calculator
Enter the invoice details to see the total finance cost
The total gross value of the invoice being financed
Advance rate is the upfront percentage paid; days outstanding is how long until your customer settles
Service fee is charged on the invoice value; the discount rate is a daily charge on the advanced amount
Helps provide a more relevant context for your results
Finance Cost Breakdown
Based on your invoice details and finance terms
Typical Invoice Finance Rate Ranges
Indicative rate ranges by finance type, for quick reference when comparing invoice finance providers and structures.
| Finance Type | Typical Advance Rate | Typical Service Fee | Typical Daily Rate |
|---|---|---|---|
| Invoice Factoring | 80% – 90% | 0.5% – 3% | 0.01% – 0.05% |
| Invoice Discounting | 85% – 90% | 0.2% – 0.75% | 0.01% – 0.04% |
| Selective Invoice Finance | 70% – 90% | 1% – 4% | 0.02% – 0.06% |
| Spot Factoring | 70% – 85% | 2% – 5% | 0.02% – 0.08% |
Invoice Finance Cost FAQ
Everything you need to know about calculating and understanding the cost of invoice finance.
Invoice finance typically costs between 1% and 5% of the invoice value, made up of a service fee and a discount charge based on how many days the invoice remains outstanding. The exact cost depends on your advance rate, the lender’s fees and how quickly your customer pays.
The discount charge is calculated by applying a daily interest rate to the advanced amount for each day the invoice remains unpaid. It works similarly to a short-term loan, so the longer your customer takes to pay, the higher the discount charge becomes.
Invoice factoring involves the finance provider managing credit control and collecting payment directly from your customers, while invoice discounting lets you retain control of collections and your customer is usually unaware finance is being used. Factoring often suits smaller businesses, while discounting suits those with established credit control processes.
Most invoice finance providers advance between 70% and 90% of the invoice value upfront, with the remaining balance, minus fees, paid once your customer settles the invoice in full.