← Invoice payment terms calculator
Freelancers search this after a factor, a card “get paid now” button, or a bookkeeper suggests selling the receivable. Three percent off a $1,200 invoice looks cheap until you price the fee against the cash you were going to wait 30 days for.
This is not 2/10 Net 30. That discount is money you give the client. Factoring is a fee you pay a third party. The client still has Net 30. You get an advance today and a reserve after they pay.
On the calculator defaults — $1,200, 3% fee, 90% advance, reserve on day 35, 24% money — the factor takes $36.00 and advances $1,044.00 today. The $120 reserve arrives later. Factoring leaves $1,161.24. Waiting 30 days for $1,200 leaves $1,176.33 — $15.09 ahead. They match at a 1.74% fee, or about 41.3% money.
At 50%, the same fee leaves $1,158.25 and waiting leaves $1,150.68. A 1.5% fee at 24% flips ahead by $2.91. Cheap 6% money still covers the wait by about $31.
| Path | Cash now | Later | After float | vs wait |
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Carrying cost is your assumption, not a late fee and not interest you can invoice. The factor fee, advance, and reserve dates come from the quote you actually have — this page does not publish a factor’s live schedule. Complementary to Should I offer 2/10 Net 30? (a discount you give the client). Open the invoice payment terms calculator to change the amount.
On the calculator defaults — a $1,200 invoice, a 3% factor fee, a 90% advance, a 35-day reserve, and a 24% annual carrying-cost assumption — factoring leaves $1,161.24 after the $36.00 fee. Waiting 30 days for $1,200 leaves $1,176.33. The fee is larger than the float you skip. This is not a recommendation to factor or to wait.
When your money is expensive or the fee is cheap. At a 50% annual carrying-cost assumption the same invoice leaves $1,158.25 after factoring and $1,150.68 after waiting. Factoring and waiting match at a 1.74% fee or about 41.3% money. A 1.5% fee at 24% flips ahead by $2.91.
No. 2/10 is a discount you give the client to pay faster. Factoring is a fee you pay a third party while the client still has Net 30. The 2/10 page prices the discount. This page prices the factor fee, the advance, and the reserve.