Invoice Factoring Calculator

Enter the invoice amount, choose an advance rate and type in the fee from your quote. The calculator shows the cash advanced now, the reserve held until your customer pays, the fee, and the balance released at payment. The days-to-pay field is there for context: it shows how long the reserve is held, but it does not change the estimate.

If you don't have a quote yet, use the fee field to test a few scenarios, then ask each provider for an all-in quote on the same invoice so the results are comparable.

Every factoring arrangement comes down to three numbers:

• The advance is the share of the invoice paid to you up front: invoice amount × advance rate.
• The reserve is the rest of the invoice, held until the customer pays: invoice amount − advance.
• The fee is the provider's charge, set in your quote. When the customer pays, the reserve is released to you less the fee.

Illustrative only: a $100,000 invoice at a 90% advance rate and a 2% quoted fee. You receive $90,000 up front. The $10,000 reserve is held until the agency pays. At payment, the $2,000 fee comes out of the reserve and $8,000 is released to you, for $98,000 in total.

The same invoice at an 80% advance puts $80,000 in your hands now and holds a $20,000 reserve. The total you receive is the same, $98,000, but less of it arrives up front. That is why the advance rate matters most when payroll and materials are due before payment.

Quotes differ because providers price risk and workload differently. The main factors:

• Volume. Larger, steadier invoice volume generally earns better pricing.
• Payment timing. The longer the customer takes to pay, the longer the provider's money is out, so payment history matters.
• Who pays the invoice. A federal agency or an established prime is a stronger payer than a small commercial customer.
• Terms. Recourse terms, contract length, minimums and whether you fund every invoice or choose all affect the price.
• Industry. Construction progress billing, retainage and lien rules add work, which is why construction factoring rates are quoted case by case. See construction contract factoring.

Government receivables generally price better than commercial ones because the payer is the U.S. government, which carries far less credit risk than a typical business customer. Federal factoring does add steps a commercial deal doesn't, such as filing a Notice of Assignment under the Assignment of Claims Act, so choose a provider that handles them routinely.

For how the full arrangement works, read government invoice factoring, explained.

Headline rates are hard to compare because providers structure fees differently. Ask every provider for the all-in cost on the same invoice, paid in 30, 60 and 90 days, including any account, wire or minimum-volume charges. Then compare the advance rate, how long onboarding takes and how quickly each invoice is funded once you're active.

The buyer's guide to government factoring companies lists the criteria that matter, and factoring vs. a line of credit compares the cost structure with a bank line.

Encore brings 30+ years of specialty finance experience and $35B+ in total funding provided. Encore advances 80 to 90% of invoice value with no fixed caps. You'll hear back within 24 hours of applying, onboarding typically takes two to three weeks, and once you're active, each invoice is funded the same or next day.