🍁 The Invoice (CAD)
The freight invoice / load amount you are factoring.
From your agreement — the % the factor keeps per invoice.
Share paid upfront; the rest is held as reserve. Use your own (often ~90–97%).
Any fixed per-invoice charge, if your factor uses one.
ACH/wire, fuel-advance, or monthly-minimum share for this invoice.
Enables the annualized (APR-style) effective cost.
📅 Monthly View (optional)
Total CAD you factor in a month — projects your monthly cost at the same effective rate.
Total Factoring Cost
—CAD
factoring fee plus any flat and other fees
Net Cash In Hand (Upfront)
—CAD
advance paid to you, minus the fees taken
Factoring Fee
—
Advance Amount
—
Reserve Held Back
—
Net Proceeds (Total)
—
Effective Cost
—
Annualized Cost (APR)
—
Est. Monthly Cost
—
For information only — not financial, tax, legal, or business advice. QuicklyFig does not provide or verify factoring rates, fee schedules, GST/HST, excise tax, or any provincial or federal rate. Factoring pricing varies by provider, recourse type, and volume — enter the actual rate and fees from your own factoring agreement. Confirm pricing and tax treatment with your factoring company, accountant, or qualified advisor.
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Deciding factor vs. self-funding? If you are a broker weighing factoring against using your own capital, use the Freight Broker Factoring Break-Even Calculator to find the rate where the two costs are equal. This tool prices the cost of factoring itself.
Want the load's profit first? Use the Canadian Load Profitability Calculator to see net profit per load before factoring costs.
Need your break-even rate? Use the Canadian Owner-Operator Break-Even Rate Calculator to find the minimum rate per loaded km.
Want the load's profit first? Use the Canadian Load Profitability Calculator to see net profit per load before factoring costs.
Need your break-even rate? Use the Canadian Owner-Operator Break-Even Rate Calculator to find the minimum rate per loaded km.
How freight factoring cost is calculated
Factoring turns an unpaid freight invoice into cash now instead of in 30, 45, or 60 days — but it has a price. The factor charges a factoring fee (a percentage of the invoice), may add a flat per-invoice fee and other charges like ACH or wire fees, and pays you most of the invoice upfront at the advance rate, holding the rest as a reserve until your customer pays. This calculator takes the figures from your own agreement and shows the dollar cost and the cash you actually receive.
Because factoring is short-term, a fee that looks small as a percent of the invoice can be a large annualized cost over the few weeks until your customer pays. Enter the days-to-pay to see that effective APR-style figure, and your monthly factored volume to project the cost across a full month.
| Figure | Formula |
|---|---|
| Factoring fee | invoice amount × fee rate % |
| Total factoring cost | factoring fee + flat fee + other fees |
| Advance amount | invoice amount × advance rate % |
| Reserve held back | invoice amount − advance amount |
| Net cash in hand (upfront) | advance amount − total factoring cost |
| Net proceeds (total) | invoice amount − total factoring cost |
| Effective cost | total factoring cost ÷ invoice amount × 100 |
| Annualized cost (APR) | (total cost ÷ net cash in hand) × 365 ÷ days to pay × 100 |
| Est. monthly cost | monthly factored volume × effective cost % |
Run the numbers with and without the flat and other fees to see how much the extras add on top of the headline rate. A low advertised rate with several add-on fees can cost more than a slightly higher all-in rate with none.
Frequently Asked Questions
How much does freight factoring cost in Canada?
Factoring cost depends entirely on the rate and fees in your own factoring agreement, not on any fixed figure. The main charge is the factoring fee — a percentage of each invoice you factor — plus any flat per-invoice fee and extras such as ACH or wire charges. This calculator multiplies your invoice amount by the fee rate you enter, adds any flat and other fees you enter, and shows the total dollar cost and what it works out to as a percent of the invoice. Enter your own actual rate and fees; nothing is assumed.
What is the difference between the advance rate and the factoring fee?
The advance rate is the share of the invoice the factor pays you upfront — often somewhere around 90% to 97%, but use your own. The rest is held back as a reserve and released later, usually once your customer pays. The factoring fee is what the factor keeps for the service. So your upfront cash is the advance minus the fees taken, and your reserve is returned afterward. This tool shows the advance amount, the reserve held back, the net cash in hand after fees, and the total you ultimately receive.
How is the effective annualized cost (APR) of factoring worked out?
Factoring is short-term financing, so a small percentage over a few weeks can be expensive on an annual basis. If you enter the number of days until your customer pays, the tool annualizes the cost: it divides the total factoring cost by the net cash you actually received upfront, then scales that up to a full year (× 365 ÷ days). It is an estimate for comparison only — your real agreement may bill differently, so confirm terms with your factor.
Does this calculator use GST/HST, tax, or set factoring rates?
No. The tool uses only the figures you enter and does not apply GST/HST, income tax, CRA figures, or any built-in or "market" factoring rate or fee schedule. Factoring fees and rates vary widely by provider, recourse type, and your volume, so enter the actual numbers from your own agreement. It is a planning estimate only — confirm pricing and tax treatment with your factoring company and a qualified advisor.
How is this different from the Freight Broker Factoring Break-Even Calculator?
This Canadian tool is for carriers and owner-operators and answers "what does factoring this invoice actually cost me, and how much cash do I get?" — it breaks down the fee, advance, reserve, net proceeds, and effective cost in CAD. The Freight Broker Factoring Break-Even Calculator answers a different question for brokers: whether factoring is cheaper than self-funding the cash-flow gap with your own capital, and the rate at which the two are equal. Use this one to price the cost of factoring; use that one to decide factoring versus self-funding.
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