Inventory Financing Calculator
What share of gross profit the money costs.
Cost of the financing
$5,152
27.6% annualised
The financing takes 8.2% of the gross profit on this stock. That is acceptable if the alternative is not buying the stock at all, and expensive if you could have waited a month and paid cash.
How the Inventory Financing Calculator works
The right comparison is not against a bank rate — it is against not buying the stock at all. Financing that takes a fifth of the gross profit is expensive money and still worth it if the alternative is an empty shelf.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What does inventory financing cost?
Commonly 1.5% to 3% a month on the financed amount plus an arrangement fee. Annualised that is well into double digits, which is normal for short-term secured lending.
How do I judge whether it is worth it?
Compare the financing cost against the gross profit on the stock it lets you buy. If it consumes a modest share and the stock will sell, it is usually worth it.
What is the risk?
Stock that does not sell as fast as planned. The financing cost accrues monthly whether or not the goods move, which turns a slow season into a compounding problem.
Are there cheaper alternatives?
Supplier credit is usually cheapest, then a bank facility, then specialist inventory finance, then merchant cash advances. Work down that list in order.