Supplier Payment Terms Cost Calculator
Enter your invoice amount, cost of capital and extra payment days.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
Stretching how long you take to pay suppliers — say from Net 30 to Net 60 — effectively gives your business an interest-free loan for those extra days, since you keep the cash working for you instead of handing it over. This calculator puts a dollar value on that by treating your unpaid invoice as capital retained at your company's cost of capital.
The formula is value = invoice amount × cost of capital (annual %) × extra days ÷ 365. A $100,000 invoice held an extra 30 days at a 12% cost of capital is worth roughly $986 — money you effectively earned (or avoided borrowing) just by delaying payment.
CFOs and treasury or procurement teams use this to evaluate whether renegotiating supplier terms is worth the relationship friction, and to compare it against early-payment discounts, which are the mirror-image trade: giving up this same value in exchange for a percentage off the invoice.
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