Payments · Supplier terms
Price the terms.
Choose the timing.
Compare an invoice discount with the estimated cost of financing an earlier supplier payment.
Invoice amount→Discount savings − financing cost→Net benefit of paying early
Net benefit of paying early
$135.56Early Payment$9,800.00
Discount Savings$200.00
Days Early20.0 days
Implied Annual Rate37.2%
Financing Cost$64.44
Break Even Financing Apr37.2%
Net Due Payment$10,000.00
Planning estimate only. Verify actual tax rules, prices, cash-flow timing, exchange quotes, fees, and accounting treatment for your business.Calculation method
Discount savings minus simple financing cost for the days accelerated.
The implied annual rate annualizes savings relative to the discounted payment. This estimate excludes compounding, lender fees, minimum charges, taxes, cash constraints, supplier risk, late-payment consequences, dynamic discounting, and alternative uses of cash.