Invoice discounting calculator
Estimate available cash and annual cost separately. Change every assumption to match your business and the written proposal.
This calculator uses your assumptions, not live provider rates, and does not assess eligibility. The availability model deducts ineligible debt, applies the advance rate, caps funding, then subtracts reserves and current drawings. A provider may calculate these in a different order.
How the estimate works
Eligible invoices = outstanding invoices − ineligible invoices. Funding before reserve = the smaller of eligible invoices × advance rate and facility limit. Additional availability = that amount − reserve − existing drawings, with negative results shown as zero additional availability.
Annual discount charge = average funded balance × total annual rate. Annual service cost = the higher of chargeable annual turnover × service percentage and twelve monthly minimum fees. First-year total adds the one-off setup cost. This assumes stable average drawings and annual usage; actual daily balances and fee timing vary.
Understanding the limits
The model does not individually calculate customer concentration, currency adjustments, invoice-ageing changes or specific contractual reserves. Include their effects in the ineligible amount or reserve only if that matches the provider's method. Do not double count an exclusion.
Average funded balance is a separate cost assumption, not a prediction from the current ledger. The tool shows a warning if that assumption exceeds the facility limit or the funding supported by the current invoices. An estimate is not a quote, a credit decision or confirmation that invoices qualify.
What if customers pay late?
Late payment can raise average drawings and discount charges, while ageing rules may reduce eligibility. Change both assumptions to test that scenario. Do not model only the extra interest.
Sources and verification
Published material checked on 24 October 2026. Provider terms can change; confirm them before applying. Examples and comparison methods are our own illustrations.
