Free Invoice Generator

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

Common terms, there to save typing. They aren't a recommendation of what to offer.

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 the early payment discount calculator does not do

  • It doesn't tell you whether to offer the discount. That depends on how much getting the cash sooner is worth to you right now.
  • It uses a 365-day year and doesn't compound. Use the figure to compare terms with each other, not as 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

For terms more complicated than a day count, such as end of month or working days, use the invoice due date calculator to find the Net date. For what the invoice is worth once that date has gone past, there is the late payment fee calculator. To turn these terms into wording for the invoice and the contract, use the payment terms generator.

Last updated 21 September 2026