🛒 Procurement & Purchasing
Payment Terms & Early Payment Discount Calculator
Evaluate the value of paying a supplier early to receive a cash discount.
Enter your figures
Results
Early-payment discount
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Net payment
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Annualized discount yield
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The annualized rate is a comparison measure, not an investment return. It assumes the discount is earned by paying days earlier than the normal due date.
Formula: Annualized discount rate = [discount ÷ (100 − discount)] × (365 ÷ days early).
How to use this calculator
What to enter
Enter or select the following as requested: Currency; Invoice amount; Early-payment discount (%); Days saved by early payment. Follow the units, valid ranges, examples, and options displayed beside each field.
What the result means
The discount amount is the reduction from the original price, and the final price is the amount remaining after the discount, where those outputs are shown.
When to use it
Use this to estimate sale prices or compare discount offers. Check separately whether tax, shipping, and other fees are included.