Early Payment Discount Calculator

Free early payment discount calculator: find the annualised cost of terms such as 2/10 net 30.

How the early payment discount calculator works

Enter the discount percentage, the discount period and the full payment period to see what the discount really costs.

Cost per period = d ÷ (100 − d). Annualised cost = cost per period × 365 ÷ (net days − discount days).

Example: 2/10 net 30 costs about 2.04% per period, roughly 37.2% a year.

Only if your cash is worth more than the annualised cost. A 2/10 net 30 discount is expensive compared with most financing.

For information only – not financial, tax or legal advice. See our disclaimer.