Invoice Discount Calculator
See what an invoice discount is worth. Enter the invoice amount and a percentage or fixed discount to get the amount to pay. For early-payment terms – for example 2% off if paid within 10 days, otherwise due in 30 – the calculator also shows the yearly interest rate you implicitly pay by skipping the discount, both simple and compounded.
- Runs in your browser
- No sign-up
- Free to use
For early-payment terms such as 2/10 net 30.
If the yearly cost of skipping an early-payment discount is above your cost of borrowing, taking the discount is usually worth it.
How to use Invoice Discount Calculator
- Enter the invoice amount.
- Choose percentage or fixed discount.
- Add the early-payment days and the normal due date.
- Compare the yearly cost with your borrowing cost.
Invoice Discount Calculator features
Two discount types
Percentage or fixed.
Early-payment terms
Discount days and net days.
Implied interest
Simple and compounded.
Clear savings
Amount saved.
Formula shown
Every result explains how it was calculated.
Any currency
Choose from 30+ currencies; amounts are formatted for it.
When to use Invoice Discount Calculator
- Deciding whether to pay suppliers early.
- Offering early-payment terms.
- Cash management.
- Accounts payable reviews.
Invoice Discount Calculator FAQ
What does 2/10 net 30 mean?
2% discount if paid within 10 days; otherwise the full amount is due in 30 days.
Why is the yearly cost so high?
Giving up 2% to keep the money for 20 more days is like borrowing at about 37% a year.
When should I take the discount?
When its yearly cost is above what it costs you to borrow or what your cash earns.
Should I offer such terms?
They speed up payments but cost margin; compare with your cost of financing.
The hidden interest rate
Early-payment discounts look small but carry a high implied interest rate. For most businesses with access to credit, taking the discount is cheaper than paying late.
For sellers, offering a discount can be cheaper than chasing late invoices or factoring them.
All amounts stay on your device: the calculator runs in your browser, nothing you type is uploaded or saved, and the result updates as you change any field. The currency setting only changes how numbers are shown; no exchange rate is applied.
To keep a record, copy the main result with the copy button or note the breakdown shown under it. Reset brings back the example values, which is a quick way to see how the calculation behaves before entering your own figures.