Invoice Finance Affordability Calculator UK

This calculator tells you whether a monthly invoice finance cost is affordable for your business, based on your turnover, gross margin and expected facility size. It estimates the annual service charge and discount charge, at the current 3.75% Bank of England base rate plus an assumed 2% discount margin and 70% average use of the facility (the calculator's assumptions, not a quote), then expresses the result as a percentage of monthly revenue and of gross margin. On the default example (£500,000 turnover, 35% gross margin, £80,000 facility, 1.5% service charge), the estimated cost is £893 a month, 2.14% of monthly revenue and 6.1% of gross margin, rated Comfortable. Above 15% of margin is rated Tight, 8 to 15% Acceptable, 3 to 8% Comfortable, and under 3% an Excellent fit.

### Worked example: £500,000 turnover, 35% gross margin (default calculator scenario)

| Item | Value |
| --- | --- |
| Annual turnover | £500,000 |
| Gross margin | 35% |
| Expected facility size | £80,000 |
| Service charge (1.5% of turnover) | £7,500/year |
| Discount charge (3.75% base + 2% margin, 70% average utilisation) | £3,220/year |
| Estimated monthly cost | £893 |
| Cost as % of monthly revenue | 2.14% |
| Cost as % of gross margin | 6.1% |
| Sustainability rating | Comfortable |

Source: Market Invoice affordability calculator, base rate 3.75% + 2% discount margin

Illustrative default scenario. Adjust the calculator inputs above for your own figures.