Invoice Financing Calculator

Business owners looking to fill gaps in cash flow or improve cash flow management usually have lots of questions about how to estimate their invoice financing payments. We have made this process easier. Use the Lendzero Invoice Financing calculator to get a head start.
Request Amount
Interest Rate
Factor Rate
Repayment Term
Repayment Term
Repayment Term
Est. Payment
Minimum payment:
Time to Payoff:
Interest paid:

Invoice Financing Qualifications

Time in Business

< 12 months

Annual Revenue


Credit Score


Funding Amounts
Up to 10M per month
1% - 8%
Processing Time
1 to 5 days
How to Calculate Your Invoice Financing?

How to Calculate Your Invoice Financing?

Invoice financing may be a solution for your business if you are looking to increase your cash flow. With invoice financing, you can obtain quick access to the capital that your customers owe you and avoid a short-term cash flow gap.

Before applying for invoice financing, utilize the Lendzero Invoice Financing calculator to see your weekly payments. Insert the information below:

  • Requested amount: You may borrow as much as $500K.
  • Interest rate: Interest rates for invoice financing provided by Lendzero’s partners begin at 1.00%.
  • Invoice due in: Invoices can be due in as much as 12 weeks.
How to Use the Invoice Financing Calculator?

How to Use the Invoice Financing Calculator?

There are four steps to utilize our Invoice Financing calculator.

  • Put in the total amount of the invoice you want to finance.
  • Put in the estimated invoice factor fee as the interest rate.
  • Choose the net terms of the invoice by amount of weeks. 
  • Determine your payments. Try estimating with different terms, so you can project the potential expense of funding whether your client pays their invoice in four weeks or 12 weeks.

Sample of How to Utilize the Invoice Financing Calculator

For example, Tom’s Bakery factors a $10K invoice. The lender advances Tom 80% of the invoice value ($8K) and charges a 1% factor fee weekly until the invoice is fully paid.

It takes Tom’s client eight weeks to pay their invoice. As such, Tom incurs $800 in fees. That amount is subtracted from the $2K reserve and Tom receives a $1.2K rebate.

Components of the invoice financing calculator

Components of the invoice financing calculator

The Invoice Financing calculator will show you how much invoice financing will cost you. 

Below are terms to know that will help you.

  • Advance Rate: Refers to the percent of the invoice value a lender will pay your company when your receivables are financed. In general, lenders typically give 70%-90% of your accounts receivable value. The default rate for the Lendzero Invoice Financing calculator is 80%.
  • Reserve: Amount of the invoice value not advanced to the company. The reserve is given back to the company after the invoice is paid.
  • Factor Fee: In this structure, the lender charges a small percent of the invoice e.g. 1-3% before the balance is paid. As such, more factor fees will be due the longer an invoice goes unpaid.

Rebate: After your client pays the invoice, your lender rebates you some of the advance that has been held in reserve, minus any fees.

What to watch out for?

What to watch out for?

Keep in mind your lender could charge an origination or application fee upfront and may also have servicing, ACH and bank wire fees.

Lenders have different types of fees and there are many factors they consider when it comes to determining the size of each one.

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