Early payment discount calculator
Compare invoice discount savings with borrowing costs and fees before paying early.
Compare the buyer cost of taking an invoice discount with financing the discounted payment until the full-payment date. Interest is simple annual interest on the discounted amount for the difference in payment days, plus one fixed fee per invoice. Discount rates are 0 to 99 percent; financing rates are 0 to 1000 percent. A negative break-even rate means the fee alone exceeds the saving. Annualized returns assume repeatable identical opportunities and are not promised returns. Effective annualized percentages above 100000000000000 are reported as null with a limit flag. No tax, exchange conversion or eligibility decision is included. Runs on your device without uploads in a cancellable worker with a 10-second timeout. Limit: 250000 combined input characters, 20 scenarios, 600 monthly periods or 1000 invoices. Complete JSON and typed JSON Pointer CSV files each have an 8000000-character limit; CSV is limited to 250000 values. Preview shows 200 rows. Inputs are preserved in downloads. All results use floating-point arithmetic without payment rounding. Up to 1,000,000 characters. Review the settings before running.
Your result
How to use Early payment discount calculator
- Enter an invoice or choose batch mode and paste the invoice CSV.
- Set the discount terms, payment days, annual financing rate, fixed fee and day-count basis.
- Compare the net saving and break-even rate, then download the full invoice report.
Useful next steps
Compare the amount you actually finance
For a 10000 invoice with a 2 percent discount, the early payment is 9800. Financing cost uses that discounted principal for the days between early and full payment. Add the fixed fee once. A lower annual rate can still lose money when its fee exceeds the saving.
Read annualized figures carefully
Simple annualized discount return scales the saving relative to the discounted payment by the entered day-count basis. Effective annualization assumes identical opportunities can repeat with reinvestment. These mathematical comparisons do not establish available credit, contractual eligibility or an achievable investment return.