Freight Factoring Fee Calculator
Estimate what invoice factoring costs an owner-operator and what cash you keep.
Many new owner-operators use freight factoring to get paid right after delivery instead of waiting 30 to 45 days for a broker or shipper. Factoring is not truck financing, but it affects whether a truck payment is affordable, because it changes your cash flow and your real margin. This calculator shows what the service costs.
Enter the typical invoice amount, the percentage fee the factor charges, any flat per-invoice fee, how many invoices you factor per month and other monthly costs. The cost of one invoice is invoice x percent + flat fee. Worked example (illustrative): a $2,800 invoice at 3% costs $84, so you receive $2,716. With 12 invoices a month the fees are $1,008 plus $40 of other costs, about $1,048 a month. Compare that number with your monthly truck payment before you commit to either.
Limits: real contracts may use tiered rates that rise with days outstanding, minimum volumes, reserve holdbacks or recourse clauses that make you repay unpaid invoices. Read the agreement and ask for the all-in effective cost.