Invoice advance cost calculator
How much does it really cost to have the bank advance an invoice? Enter the amount, share advanced, days, rate and fee to see the cash you receive and the effective annual cost.
How the cost is calculated
With an invoice advance (in Italy anticipo fatture or salvo buon fine) the bank credits part of the invoice now, usually 70% to 90%, and is repaid when the customer pays.
- Amount advanced = invoice amount × share advanced.
- Interest = amount advanced × annual rate × days ÷ 365.
- Total cost = interest + fees (set-up, per invoice, collection).
- Effective annual cost = total cost ÷ cash received × 365 ÷ days.
Example: a €10,000 invoice advanced at 80% for 90 days at 6.5% with a €10 fee. The bank advances €8,000; after about €128 interest and the €10 fee you keep about €7,862, and the effective cost is about 7.1% a year.
What to check before signing
- Fixed fees weigh more on small invoices and short terms.
- If the customer does not pay, the bank charges the advance back: the risk stays with you.
- The advance uses a credit line: check how much is left for the coming months.
The real terms are in your bank's information sheet.
Check your cash before you factor
Often an advance only covers a few days in the red. CassaChiara reads Italian e-invoices and shows a 90-day cash forecast: you see the day the account would go below zero and how much you really need, so you only advance the invoices that matter.
Try it free with your invoices See pricingFrequently asked questions
How is invoice advance interest calculated?
Amount advanced times annual rate times days to the due date, divided by 365. Fees are added on top.
How much of an invoice does the bank advance?
Usually 70% to 90% of the amount, depending on the customer and the credit line.
What happens if the customer does not pay?
With a salvo buon fine advance the bank charges the amount back to the company account.
Is the data I enter sent anywhere?
No: the calculation runs in your browser.