PO financing profit calculator
Check whether a purchase order is still profitable after PO financing fees — before you accept the order.
Free, no sign-up, and nothing you enter leaves your browser.
- Gross profit
- $80,000
- Gross margin
- 32.0%
- Estimated financing cost
- $10,200
- Net profit after financing
- $69,800
Estimates only. Your actual terms are set in a written proposal — call (929) 658-8087 for a free quote.
How to read the result
The fee runs until your customer pays, not until you ship
Purchase order financing is priced on the funds advanced to your supplier, and the clock runs from the day the supplier is paid to the day the end customer settles. Production time, transit, inspection and the customer's own payment terms are all inside that window.
That is why a delay hurts more than a rate. An order that slips a month can cost another full period of financing on the whole supplier balance.
Margin is the real constraint
Most funders look for gross margin around 15% or more, because the financing cost comes out of that margin. On a thin-margin deal the arithmetic can leave you working for nothing once freight and duty are counted.
Run the calculation on your landed cost, not your invoice cost, and stress-test it with an extra 30 days before accepting the order.
Reference
The ranges behind these numbers
Your own quote depends on volume, customer credit and days-to-pay.
| Program | Advance | Typical cost |
|---|---|---|
| Accounts Receivable Financing | 80%–95% of invoice value | 0.75%–3% per 30 days |
| Purchase Order Financing | Up to 100% of supplier costs | 1.5%–6% per 30 days |
| Invoice Factoring | Up to 95% upfront | 1%–3.5% per 30 days |
| Freight Factoring | Up to 97% of the load | 1.5%–4% flat per load |
Frequently asked questions
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