Compare the true cost of invoice factoring against a business credit line — so you can see which option puts more money in your pocket.
Your Revenue
$
DAYS
How long customers typically take to pay invoices. Default is 40 days.
Factoring Details
Enter your factoring company's rate and fees
1%2%3%4%
%
Typical range: 1.5% – 4%. Enter manually if outside slider range.
$
Any yearly fees charged by the factor — EFT/wire fees, annual admin fee, renewal fees, etc. Multiplied by 12 for annualized cost.
Credit Line Details
Enter your business line of credit terms
$
Maximum available credit on the line
%
Interest rate on drawn balance
10%25%50%75%100%
Estimated at 50% — expenses go out Fridays, client payments arrive evenly Mon–Fri, so the line is paid down steadily mid-week. Adjust if your cash flow differs.
$
Any yearly fees on the credit line — annual fee, renewal fee, wire/EFT charges, etc. Multiplied by 12 for annualized cost.
Your Comparison
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Factoring
Monthly Gross Revenue—
Factoring Fee—
Additional Annual Costs / Mo—
Total Monthly Cost—
Net Cash You Keep / Mo—
Annual Cost—
Credit Line
Monthly Gross Revenue—
Monthly Interest Cost—
Additional Annual Costs / Mo—
Total Monthly Cost—
Net Cash You Keep / Mo—
Annual Cost—
Cheaper Option Saves / Month
—
per month
Cheaper Option Saves / Year
—
per year
Break-Even Point
—
—
Disclaimer: This calculator is provided for informational purposes only and results are estimates based on the information entered. Actual costs vary by lender, factoring agreement, volume, and market conditions. No guarantee of accuracy is made. Always review your agreements carefully and consult a qualified financial or business advisor before making decisions.
