Invoice Discount Calculator

About this calculator

Many B2B invoices offer an early-payment discount — commonly written as terms like “2/10 net 30,” meaning a 2% discount if paid within 10 days, with the full amount otherwise due in 30 — as an incentive for the buyer to pay faster and improve the seller's cash flow. Taking the discount effectively earns the buyer a return; skipping it and paying at the due date is, in effect, an interest-free short-term loan from the seller (or an expensive one, annualized, if the discount offered was large).

This calculator takes the invoice amount and the discount terms and returns both the discount value and the net amount payable if you pay within the early window. Accounts payable teams use it to decide whether taking the discount is worth the cash outlay sooner, and sellers use the same math to price early-payment incentives into their terms.