How does this factoring calculator work?

It applies your own quote to your own invoice: the quoted rate times the invoice amount gives the factor fee, add-on per-invoice fees stack on top, and the optional advance rate splits the invoice into the up-front payment and the reserve released after the broker pays. Multiplying by your monthly invoice count projects the running cost.

Why does the calculator not suggest a typical rate?

No agency publishes factoring rates, so any pre-filled number would be an invented benchmark. The published ranges that do exist are named publishers' own claims: altLINE publishes that invoice factoring rates tend to range from 1 to 5 percent of the invoice value, driven by factored volume, invoice age, debtor credit, and debtor concentration.

Is a lower rate always the cheaper agreement?

Not necessarily. A low headline rate can sit on top of per-invoice processing charges, wire fees, and minimum volume commitments that a flat, slightly higher rate avoids. Run each quote through the calculator on your real invoice sizes and volume; the cheaper agreement is the one that costs less on your freight, not the one with the smaller headline number.

Free tool

Factoring cost calculator

Type in the numbers from a factoring quote, the rate, the advance, and the add-on fees, and this calculator shows what the agreement takes out of each invoice and what that adds up to monthly and yearly. Nothing is pre-filled, because no honest market rate exists to pre-fill.

By Evan Reid, Founder of Haul Handbook · Updated Jul 22, 2026

Run your own quote

Estimate only, not a quote

Enter the numbers from a factoring quote or agreement. Nothing is pre-filled: no market rate exists to pre-fill honestly, so the estimate is built entirely from what you type.

Loading the calculator inputs…

Invoice amount ($)

Quoted factoring rate (%)

Advance rate (%, optional)

Other per-invoice fees ($, optional)

Invoices per month (optional)

Enter an invoice amount and a quoted rate to see the cost breakdown.

The mechanics behind the math

RTS describes the structure on its freight factoring page: the factor purchases the invoice, advances more than 90 percent of the total within 24 hours, and sends the remaining balance minus its fee once the invoice is paid. The calculator mirrors that structure: fee off the top, advance up front, reserve at settlement. What drives the quoted percentage itself, and the ceilings a few factors publish, is covered in how these rates are structured.

The same publisher states freight factoring usually skips tiered structures in favor of one flat base rate, unlike general invoice factoring. The published pricing factors are the debtor's credit and payment history, not the carrier's: higher factored volume, younger invoices, stronger debtor credit, and lower debtor concentration all earn lower rates.

What the estimate leaves out

Where tiered structures apply, the published example steps the fee up every ten to thirty days the invoice stays unpaid, so a slow-paying debtor raises the effective cost. Factoring agreements often carry charges beyond the base rate; the bank's guide names ACH, wire, and origination fees, and warns that some freight factors add per-invoice processing fees and minimum invoice fees. The estimate covers only what you type in, so ask for the full fee schedule in writing and re-run the numbers with it.

The rate is also only half the contract. Who eats a broker default is priced into every quote: recourse vs non-recourse factoring explains that term, the full machine is walked through in freight factoring for new carriers, and the broker-side alternative is compared in quick pay vs factoring.

Frequently asked questions

How does this factoring calculator work?: It applies your own quote to your own invoice: the quoted rate times the invoice amount gives the factor fee, add-on per-invoice fees stack on top, and the optional advance rate splits the invoice into the up-front payment and the reserve released after the broker pays. Multiplying by your monthly invoice count projects the running cost.
Why does the calculator not suggest a typical rate?: No agency publishes factoring rates, so any pre-filled number would be an invented benchmark. The published ranges that do exist are named publishers' own claims: altLINE publishes that invoice factoring rates tend to range from 1 to 5 percent of the invoice value, driven by factored volume, invoice age, debtor credit, and debtor concentration.
What costs can the estimate miss?: Where tiered structures apply, the published example steps the fee up every ten to thirty days the invoice stays unpaid, so a slow-paying debtor raises the effective cost. Factoring agreements often carry charges beyond the base rate; the bank's guide names ACH, wire, and origination fees, and warns that some freight factors add per-invoice processing fees and minimum invoice fees. Enter the add-on fees you can see and read the agreement for the rest.
Is a lower rate always the cheaper agreement?: Not necessarily. A low headline rate can sit on top of per-invoice processing charges, wire fees, and minimum volume commitments that a flat, slightly higher rate avoids. Run each quote through the calculator on your real invoice sizes and volume; the cheaper agreement is the one that costs less on your freight, not the one with the smaller headline number.

Sources

Primary statutes and official agency pages this guide relies on. Laws and fees change, so confirm against the current source before you act.

Invoice Factoring Rates Explained · altLINE, The Southern Bank Company
Freight Factoring for Trucking Companies · RTS Financial (Shamrock Trading Corporation)

Haul Handbook publishes educational information about trucking registration and compliance requirements. This is not legal, financial, or tax advice. Rules, fees, and deadlines change; confirm with the agency before you file or pay.