Invoice Financing Calculator
Turn unpaid invoices into working capital today. See exactly how much cash you'd receive, the fee you'd pay and the effective annual cost before you finance an invoice.
Invoice financing calculator
See the cash you'd receive today against an unpaid invoice. Adjust the advance rate, fee and payment terms to understand the cost before you commit.
The face value of the unpaid invoice you want to finance.
The share of the invoice paid to you upfront; the rest is held in reserve.
The financier's fee, charged on the invoice value.
How long until your customer settles the invoice.
- Net cash83%
- Fee2%
- Reserve15%
Net cash received
₹83,000
advance, after the financing fee
Advanced amount
₹85,000
paid to you upfront
Total fee
₹2,000
Reserve held back
₹15,000
released when your client pays
Effective annual rate
14.3%
annualised cost of this advance
Comparing finance options? See working-capital offers too.
Unlock cash tied up in invoices
Long customer payment terms can starve a healthy business of cash. Invoice financing releases most of an invoice's value upfront — but the headline fee can hide a steep annualised cost. This calculator makes the real price clear so you can decide whether to finance an invoice or use another form of working capital.
From invoice to cash in hand
Four inputs reveal the cash you receive and what it truly costs.
Enter the invoice
Start with the face value of an unpaid invoice you've raised to a creditworthy customer.
Set advance and fee
Choose the advance rate — the percentage paid upfront — and the financier's fee on the invoice value.
See your true cost
We show the cash you receive now, the reserve held back and the effective annual rate so you can compare it to other finance.
Invoice financing questions, answered
Invoice financing lets a business borrow against the value of its unpaid invoices. Instead of waiting weeks or months for a customer to pay, you receive most of the invoice value upfront from a financier, who is then repaid when the customer settles. It's a common way to smooth cash flow.
Advanced amount = invoice value × advance rate. With an 85% advance rate on a ₹1,00,000 invoice, you receive ₹85,000 upfront. The remaining 15% is the reserve, released (minus the fee) once your customer pays the invoice in full.
The reserve is the portion of the invoice not advanced to you initially — invoice value minus the advanced amount. It protects the financier against disputes or short payments and is paid to you, after deducting the fee, once the invoice is settled.
The fee is charged for a short period — only until your client pays. The effective annual rate annualises that fee (fee ÷ advanced amount × 365 ÷ payment days) so you can compare invoice financing fairly against loans and overdrafts that quote annual rates.
Not exactly. With invoice financing the invoice itself is the security, and the amount available scales with your sales rather than a fixed credit limit. A working-capital loan can be an alternative — it's worth comparing both, which you can do across 70+ lenders with PakkaLoan.
Working capital, the pakka way
Invoice financing is one route — a business or working-capital loan may cost less. Compare offers from 70+ banks and NBFCs with one application and no impact on your credit score to check.