Purchase Order Financing Cost Calculator — PO Finance Estimator

Calculate purchase order financing cost for large import or wholesale orders. Understand total PO finance cost and whether it makes sense vs other working capital options.

Quick answer: PO financing rates: 2–4% per 30 days (24–48% annualised). On a $200K PO with 60-day cycle: $12,000–$16,000 financing cost. High — but enables orders you couldn't self-fund.

💰 Purchase Order Financing Cost Calculator

Purchase Order Value ($)

Expected Selling Price ($)

PO Financing Rate (% per 30 days)

Financing Duration (days)

PO to customer payment (incl. transit + terms)

Other Costs (freight, duty, etc. $)

PO Financing Cost

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Gross Margin

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Net After Financing

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How to Use This Calculator

Enter PO value and selling price — to see if financing leaves enough margin.
Enter financing rate — typical 2–4%/30 days, lower for strong buyer creditworthiness.
Enter financing duration — from supplier payment to when your customer pays you.

Worked Example

$200K PO, $320K sell, 3%/30 days, 60 days, $18K other costs.

Financing cost: $200K × 3% × 2 = $12,000
Gross margin: $320K − $200K − $18K = $102,000
Net: $90,000 (28.1%)

At 28% net margin after financing, PO financing is worth it. If margin was under 10%, negotiate a lower rate or faster customer payment terms.

Frequently Asked Questions

The funder pays your supplier directly. You ship to your customer, invoice them, and when they pay, the funder takes their fee and remits the balance. Security is the creditworthiness of your customer — not you.

Bank lines are cheaper (8–15% APR) but need established credit and collateral. PO financing is accessible to newer companies for orders exceeding credit line capacity. Once established, shift to revolving credit.