Truck Factoring Cost Calculator
Convert a factoring rate into an apples-to-apples APR. See exactly how much cash hits your account per $10k invoice.
- Free & no signup
- APR-equivalent math
- Updates live
- Recourse + non-recourse
- Mobile-friendly
APR equivalent (annualized cost)
39.7%
- Per $10k invoice fee
- $300
- Cash upfront
- $9,200
- Reserve released later
- $500
- Total you receive
- $9,700
APR equivalent assumes daily-pay-out cycle on the same lane. Real factoring is not a loan — APR is for comparison vs. working-capital products only.
Want real quotes? Compare factors →
Side-by-side offers from vetted lenders. Soft pull. No commitment.
Why this calculator matters
True cost vs sticker price
A 3% rate sounds small until you see it as 36% APR. Decide with the right number.
Compare to working capital
Side-by-side compare a factor vs a 1.45 factor-rate revenue advance vs a 14% APR line of credit.
Reverse-engineer rate quotes
Get a quote, plug it in, see what your real annualized cost looks like.
Spot bad deals
If your APR is over 50% with steady 30-day brokers, you're overpaying. Time to switch.
Who it's for
- Owner-operator or small fleet hauling for-hire freight
- Considering a factoring contract or quick-pay program
- Already factoring and want to verify your true cost
FAQ
- Why convert factoring rate to APR?
- A 3% factoring fee on a 30-day invoice is roughly an effective 36.5% APR. Comparing to a 12% working-capital loan suddenly looks different. Use APR equivalence to make apples-to-apples decisions.
- Is factoring really a loan?
- Legally no — it's a sale of receivables. Practically, yes — you give up future cash to get cash now. The APR equivalent is for COMPARISON only, not regulatory disclosure.
- What does advance rate mean?
- It's the % of the invoice you get up front. 95% advance on a $10k invoice = $9,500 today, $500 reserve released after the broker pays (minus the factor's fee).
- Why does the APR change so much with days outstanding?
- Shorter broker payment terms compress the same fee over fewer days, raising the annualized rate. A 2% fee on a quick-pay 7-day broker is ~104% APR equivalent.
- Should I just use quick-pay instead?
- If you only haul for 1–2 brokers and they offer 1.5%–2% quick-pay, that beats most factoring. Factoring wins when you haul for many brokers, want broker credit checks built in, or need uniform back-office.
- What's a fair factoring rate?
- Owner-op solo: 2.5%–3.5%. 2–5 trucks: 2.0%–3.0%. 5+ trucks with $50k+/wk volume: 1.5%–2.0%. Below that range, scrutinize for hidden fees (ACH, lockbox, exit, monthly minimums).
- Are there fees this calculator misses?
- Yes. Common: ACH/wire fee ($5–$25/funding), lockbox fee (0.1%–0.3%), monthly minimum penalty, term-exit fee (1–6 months notice). Always read the schedule.
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