Compare the discount saved by paying early with the borrowing cost over the exact extra days of supplier credit. All terms and rates come from you.
Entered termsSame-period comparisonFree
Trade Credit Terms Calculator
Recommendation
Discount if Paid Early
Amount Due if Paid Early
Implied APR of Credit
Bank Borrowing Cost
Annual Net Advantage of Early Pay
Extra Credit Days Forgone
Entered Terms Breakdown
Frequently Asked Questions
What does “2/10 Net 30” mean?
It means a 2% discount applies if payment is made within 10 days; otherwise the full invoice is due in 30 days.
How is the cost of skipping the discount annualized?
The periodic cost is discount divided by the discounted early-payment amount. The calculator multiplies that rate by 365 divided by the extra credit days to show a simple annualized rate.
What is excluded from the comparison?
It excludes compounding, lender fees, taxes, liquidity reserves, supplier risk and contract consequences. Confirm the invoice terms and actual borrowing quote before acting.