See the Full Cost Behind an Invoice Advance

Trade Finance Cost Calculator

Turn an advance rate, interest period, and provider fees into a clear financing cost, available-cash, and maturity-balance estimate.

Enter Invoice and Financing Terms

Use one currency throughout and copy the commercial terms from the proposal you are reviewing.

Applied to the financed amount.
For example, a known insurance, document, or transfer cost included in the financing proposal.

Trade Finance Cost Estimate

Review the cost components separately before comparing providers or changing payment terms.

Enter the invoice and financing terms, then select Calculate Finance Cost.

How the Finance Estimate Is Built

The worksheet keeps the advance, time-based interest, percentage fee, fixed fees, and possible settlement balance visible as separate amounts.

Advance Amount

Invoice value multiplied by the advance percentage estimates the cash amount financed before fees.

Interest and Fees

Simple interest uses the financed amount, annual rate, financed days, and selected day-count basis. Entered fees are then added.

Planning Boundary

The result does not apply compounding, reserves, recourse claims, taxes, FX spreads, late fees, or provider-specific settlement rules.

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Frequently Asked Questions

How is the financed amount calculated?

The financed amount equals the invoice value multiplied by the advance percentage. Enter the percentage shown in the financing proposal you are reviewing.

How does the calculator estimate interest?

Simple interest equals the financed amount multiplied by the annual interest rate and the financed days, divided by the selected 360-day or 365-day basis.

What is included in total finance cost?

The result adds estimated interest, the arrangement fee calculated on the financed amount, fixed fees, and other costs entered by the user.

What does annualized finance cost mean?

It annualizes total finance cost as a percentage of the financed amount over the selected day-count basis. It is a comparison aid, not a regulated APR or lender disclosure.

Does available cash now include the maturity balance?

No. Available cash now equals the financed amount minus the entered finance costs. The unadvanced invoice balance is shown separately as a possible maturity balance.

Can I use this as a final financing quote?

Use it as a planning worksheet. Confirm compounding, minimum charges, recourse, reserves, taxes, currency conversion, late fees, settlement deductions, and legal terms with the provider.

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