Factoring rate quotes are usually given as a bare percentage, with no context for what that actually costs you across a month of invoices. This tool converts your rate, or a published range if you don’t have one yet, into real dollars.
What this number actually means
A factoring rate is charged per invoice, not per month, so a small-sounding percentage adds up fast once you're factoring dozens of invoices a month. This tool multiplies your rate by your actual invoice size and volume to show the real monthly and annual cost, not just the headline number a factoring company quotes you.
If you already have a rate, the tool also shows where it sits against a published industry range, so you have something to measure it against besides your own gut feeling.
Why recourse and non-recourse factoring cost different amounts
Recourse factoring is usually cheaper because you're still on the hook if the broker or shipper never pays the invoice. Non-recourse factoring costs more because the factoring company absorbs that risk instead, within whatever limits their contract sets. Neither is automatically the right choice. It depends on how much you trust the brokers you run with and how much you're willing to pay to move that risk off your own book.
What this calculator does not account for
It does not know your actual credit quality or the specific brokers you run with, both of which factoring companies weigh when they quote you a real rate. It also does not include reserve holdbacks, monthly minimums, or setup fees some factoring companies charge on top of the per-invoice rate. Ask about all three before signing anything. Treat the output here as your baseline cost, not a full contract estimate.
See how we calculate this for the full breakdown, including where the published rate range comes from.
Related Supporting Pages
For help choosing a specific factoring company:
- RTS Financial vs Apex Capital: Which Factoring Company Fits Your Fleet
- Cheapest Freight Factoring Rates: What Actually Drives the Price Down
Related Tools
See how factoring fits into your bigger numbers:
- Cost-Per-Mile Calculator — find your real cost per mile, fixed and variable.
- New-Authority Startup Cost Estimator — if you're still deciding whether to get your own authority.