What is a factoring reserve?

The reserve is the part of the invoice that is not advanced. When the broker pays the invoice, the reserve is released to you minus the factoring fee. In this calculator the reserve is the invoice, less the advance, less the fee, and it never goes below zero.

How are factoring fees charged?

Agreements differ. Some charge a flat percentage of the invoice. Others charge a percentage for every 30 days the invoice stays unpaid, with any started block counted as a full block. For example, 1.5 percent per 30 days on a $3,000 invoice that takes 45 days to pay is two blocks, or $90. Your agreement sets the real terms.

Freight factoring calculator

A freight factoring calculator shows what you are paid now, what factoring costs you and what the reserve pays back for an invoice. Advance = invoice × advance rate. Fee = invoice × fee percent. Reserve = invoice − advance − fee.

Enter the invoice, your advance rate and the fee from your factoring agreement. This free factoring calculator only shows the numbers for the terms you enter. It does not recommend factoring or not factoring. No signup.

Formula: Advance = invoice × advance rate. Fee = invoice × fee percent. Reserve = invoice − advance − fee, never below zero.
Example: $3,000 invoice, 90% advance, 3% flat fee: $2,700 now, $90 fee, $210 reserve, $2,910 total
Fee types: Flat, or per 30 days with any started 30 day block counted as a full block
Last updated: October 14, 2026

Invoice

The freight invoice you want to factor and the share of it that is advanced right away.

Invoice amount

Advance rate

Factoring fee

Fees vary by agreement, so there is no default. Enter the fee from your factoring agreement.

Factoring fee

Fee type

Fill in the required details above to see your results.

Freight Factoring Calculator

We work out your advance, the factoring fee and the reserve for the invoice. Enter your numbers on the left to see them.

Enter the invoice amount to see the numbers.

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How to use the freight factoring calculator

You need the invoice amount and the terms from your factoring agreement.

Enter the invoice amount
Type the total of the freight invoice you plan to factor.
Set the advance rate
The calculator starts at 90 percent. Change it to the rate in your agreement, or use Reset to default.
Enter the factoring fee
Type the fee percentage from your agreement. There is no default, because fees vary by agreement.
Choose how the fee is charged
Pick Flat for a one time fee, or Per 30 days and enter the days until the broker pays. Any started 30 day block counts as a full block.
Read your payout
See what you are paid now, the fee, the reserve released when the broker pays, the total you receive and what factoring costs as a percent of the invoice.

How freight factoring works

Freight factoring is a way to get paid on an invoice before the broker pays it. A factoring company buys the invoice, pays you an advance right away, and collects from the broker later.

The advance is a percentage of the invoice, set by the agreement. The rest is held as a reserve. When the broker pays, the reserve is released to you after the factoring fee is taken out.

The fee is set by the agreement. It may be a flat percentage of the invoice, or a percentage for each 30 days the invoice stays open. A slower paying broker can therefore cost more under a per 30 days fee.

Factoring fee example

Take a $3,000 freight invoice with a 90 percent advance rate.

Flat fee of 3 percent: advance $2,700, fee $90, reserve $210, total received $2,910.
Fee of 1.5 percent per 30 days, broker pays in 45 days: that is two 30 day blocks, so the fee is $3,000 × 1.5% × 2 = $90.
The cost of factoring is the fee as a percent of the invoice: $90 ÷ $3,000 = 3 percent.

What this calculator does not cover

Real agreements can include other charges, such as minimums, volume terms or fees for specific services. This calculator covers the advance, a fee percentage and the reserve. Compare its numbers with your own factoring agreement, which is the document that counts.

FAQ'sFrequently Asked Questions

The advance rate is the share of an invoice a factoring company pays you right away. At a 90 percent advance rate, a $3,000 invoice pays $2,700 up front. The rest is held in reserve until the broker pays.

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