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Post Shipment Finance Cost Calculator

Work out post shipment finance cost instantly with clear inputs, formula shown and shareable results.

About Post Shipment Finance Cost Calculator

Post-shipment finance bridges the gap between shipment and payment by the overseas buyer. Interest runs for the usance period of the bill, and the advance is liquidated when the export proceeds arrive.

Formula

Post-shipment cost

Advance = bill × advance rate; interest = advance × rate × usance days/365

Worked example

With the default values below, Post Shipment Finance Cost Calculator returns Advance Against The Bill of $13,500,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Export Bill Valueminimum 0
15,000,000
Advance Against The Billaccepts 10–100 %
90 %
Interest Rateaccepts 0–25 %
8 %
Usance Period In Daysaccepts 1–360
120

Results

Advance Against The Bill
$13,500,000.00
Interest For The Usance Period
$355,068.49
Net Realisation On The Bill
$14,644,931.51
Interest As Share Of Bill Value
2.3671%

Step by step

  1. 1Values used
  2. 2Post-shipment cost
  3. 3Advance Against The Bill= 13,500,000.00
  4. 4Interest For The Usance Period= 355,068.49
  5. 5Net Realisation On The Bill= 14,644,931.51
  6. 6Interest As Share Of Bill Value= 2.3671

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

What happens if the buyer pays late?

Interest continues to accrue, often at a higher overdue rate, and the concessional treatment can be withdrawn.

Does currency movement affect it?

Yes. If the advance is in local currency and the bill in foreign currency, the realisation carries exchange risk unless hedged.

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