Early Payment Discount Calculator

Early payment terms like "2/10 net 30" look like a minor courtesy on an invoice, but the annualized rate behind them is often surprisingly large - and that number matters whether you're the one offering the discount or deciding whether to take it. This calculator takes any discount percentage, discount period, and full payment term, and returns the discount amount in dollars alongside the annualized rate it represents. Useful for AP teams deciding whether to pay early, and for sellers deciding whether their own terms are actually a good deal to offer.

Enter early payment terms like 2/10 net 30 to see the annualized rate behind the discount, and exactly what it's worth on a real invoice.