Example: Invoice amount: $50,000 · Advance rate: 85% · Fee per 30 days: 2% · Days until customer pays: 45 days → Cash advanced now: $42,500.
Financing fee: $1,500
You receive in total: $48,500
Effective annual rate: 28.6%
Frequently asked questions
How do I calculate invoice discounting? Enter your numbers above and the result updates instantly. For example: Invoice amount: $50,000 · Advance rate: 85% · Fee per 30 days: 2% · Days until customer pays: 45 days → Cash advanced now: $42,500.
Is this Invoice Discounting Calculator free? Yes — completely free with no sign-up or paywall. It runs entirely in your browser and keeps working offline; the numbers you enter never leave your device.
How accurate is it? It uses the standard published formula for invoice discounting. Results are estimates for planning — not financial, tax, medical, engineering, or legal advice.