Early Payment Discount Calculator
Last reviewed: October 14, 2026
Work out what an early-payment discount such as 2/10 Net 30 is really worth. The calculator shows the cash you save, the date the discount expires, the date the full balance is due, and, most usefully, the implied annual interest rate of passing the discount up.
The headline number is that implied APR. On 2/10 Net 30 terms, skipping the discount costs about 37.2 percent a year as a simple annual rate. For the full breakdown of the notation and the math, read the 2/10 Net 30 and early payment discounts guide.
Implied APR of skipping the discount
37.2%
If you can borrow at less than 37.2%, paying early saves money.
You save
$48.00
Pay if you take the discount
$2,352.00
Last day to claim discount
Saturday, October 24, 2026
Full payment due
Friday, November 13, 2026
Full amount, no discount: $2,400.00
How 2/10 Net 30 notation works
The shorthand stands for three agreed terms, and the calculator has a field for each. The first number is the discount percentage, the second is the discount window in days, and the figure after Net is the full payment term in days. So 2/10 Net 30 means take 2 percent off if you pay within 10 days, otherwise the whole amount is due in 30. The US Treasury's discount calculator page reads its own example that way: a 2 percent/10 net 30 offer is a discount of .02, with 10 days in the discount period and 30 days to pay before payment is late. The same pattern covers 1/10 Net 30, 3/10 Net 30, and 2/10 Net 60; only the three inputs change. The calculator counts both deadlines in calendar days from the invoice date and does not move one that lands on a weekend or holiday, so check your contract if it says otherwise. For US federal agencies, the Treasury's Prompt Payment guidance starts the discount period on the invoice date when the invoice carries one, and FAR 52.232-8 lets a discount date that falls on a Saturday, Sunday, or legal holiday when Federal Government offices are closed be paid on the following business day. The calculator does not apply that extension.
Why the implied APR is the number that matters
Skipping a 2/10 Net 30 discount is the same as borrowing the discounted amount for the extra 20 days at a steep rate. As a simple annual rate that is 2/98 × 365/20, about 37.2 percent; compounded over the year the same terms come to about 44.6 percent, and the calculator shows the simple figure. Framed that way the decision is simple: if your business can raise cash for less than the implied APR, whether from a line of credit, a card, or your own reserves, paying early is the cheaper option. The calculator does this annualization for you so you can compare the discount directly against your real cost of capital.
For informational purposes only
This calculator provides general estimates based on business day counting rules. It does not constitute legal advice. Deadlines in legal, regulatory, or contractual matters may be subject to jurisdiction-specific rules, court orders, or statutory exceptions. Always verify critical deadlines with a qualified professional.
Sources for these rules
- Prompt Payment, Formula and Calculator for Discounts: accept the discount when the effective annual discount rate is larger than the current value of funds rate; the example reads a 2 percent/10 net 30 offer as a discount of .02, 10 days in the discount period and 30 days to pay before payment is late (U.S. Department of the Treasury, Bureau of the Fiscal Service)
- Prompt Payment, Discounts on Payments: the invoice date starts the discount period (U.S. Department of the Treasury, Bureau of the Fiscal Service)
- FAR 52.232-8, Discounts for Prompt Payment: time computed from the date of the invoice; when the discount date falls on a Saturday, Sunday, or legal holiday when Federal Government offices are closed, payment may be made on the following business day (Acquisition.gov (Federal Acquisition Regulation))
Checked October 12, 2026. All sources