Factoring True APR Calculator
A 3% factoring fee sounds manageable. Annualized over 30 days it becomes nearly 42% APR. Enter your deal terms and see the real cost of capital before you sign.
TrueUnderwrite
Factoring Cost & Effective APR Analysis
Generated:
Common Deal Structures
Unusual advance rate.Advances below 50% are rare in standard factoring agreements. Confirm your deal terms — the calculator still runs, but the APR will be elevated.
Factoring Deal Terms
The gross invoice value you are factoring.
Percentage of the invoice funded upfront. Industry standard is 90–95%.
Fee applied to the full invoice value, not just the cash advanced.
Average days until the broker pays the factoring company (typically 30–45 days).
Factoring APR Audit
Annualized Cost of Capital — 365-day basis
True APR
Annualized cost of capital on Day-0 proceeds. 365-day calendar base.
Context: Traditional bank lines run 8–18% APR. Factoring float typically annualizes to 30–60%+.