Invoice generatorFree, no sign-up — your invoice is saved in your browser, not in an account

Early payment discount calculator

Work out what an early payment discount takes off the invoice, when each deadline falls, and what those terms cost you annualised. 2/10 Net 30 is dearer than it sounds.

The invoice

The full amount, before any early payment discount.

Both deadlines are counted from this day.

Used only if you press Create this invoice, as the name of the line.

The terms

The terms people write most often, to save typing — not a list of terms you ought to be offering.

Pay inside this many days and the discount applies.

The Net term. It has to be longer than the discount window, or the discount buys no time.

GuideEarly payment discountsHow this works, and where the figures go wrong →

What this calculator does not do

  • It does not tell you whether to offer the discount. That depends on what the cash is worth to you this month, which is not arithmetic.
  • It uses a 365-day year and does not compound. It is a comparison figure, near enough to hold terms against each other, not a quoted rate.
  • It does not know whether the discount changes the tax on the invoice. In some places a discount taken changes the taxable amount and needs a credit note; check how that works where you invoice.
  • It does not keep anything. Nothing is written to your browser's storage while you use it and nothing is sent to us, so the figures are gone when you close the tab.

Related

To work the Net date out from terms more complicated than a day count — end of month, working days — use the invoice due date calculator. For what the invoice is worth once that date has gone past, there is the late payment fee calculator.

Last updated 21 September 2026