Net proceeds estimator
Estimate total cash received from one invoice across both the initial advance and the reserve release after fees.
Estimate only. Estimate only. This calculator runs locally in the browser, does not collect inputs, does not send requests, and does not represent an offered or promised rate.
Result will appear here.
Enter values and calculate. No inputs are transmitted.
Input limits
- Invoice amount must be greater than zero.
- Advance rate must be between 0 and 100 percent.
- Fee rate must be between 0 and 25 percent.
Example calculation
- $10,000 invoice
- 85.00% advance rate: $8,500 initial cash
- 3.00% fee: $300
- Estimated reserve after fee: $200
- Estimated total cash received: $8,700
What this estimate does not include
- Wire, ACH, or platform fees beyond the factoring fee.
- Short pays, credits, or chargeback deductions from the reserve.
- Minimum fees or reserve holds applied from other invoices.
- Tax treatment of fee or reserve amounts.
Questions to ask a factoring company
- Is the fee deducted from the reserve or billed separately?
- When exactly is the reserve released?
- Can reserve from one invoice be applied to obligations on another?
- What happens if the customer pays less than the invoice amount?
FAQ
What is the reserve release?
The reserve is the percentage held back from the advance. It is released after the customer pays, minus any deductions for fees and chargebacks.
What if the fee exceeds the reserve?
If the fee is larger than the reserve, no reserve is released. Some agreements deduct the shortfall from future funded invoices.
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.