How do I compare an early-pay discount with a simple funding cost for bringing payment forward?
Uses a 365-day simple rate on the discounted payment. Currency, taxes, compound interest and liquidity constraints are excluded.
Open Supplier discount clockTry the worked example
These are the example inputs from Supplier discount clock. Replace them in the tool to run your own case.
| Eligible invoice (€) | Early discount (%) | Days brought forward (days) | Annual funding rate (%) |
|---|---|---|---|
| 4800 | 2 | 20 | 7 |
Example result
Indicative net saving · €77.96
Who uses this?
Purchasing administrator. The free online tool runs the calculation in your browser. To edit the files and use the tools offline in one business, see the €49 offline edition.
Where the idea came from
A person reviews the output and handles exceptions before buying. This independent application adapts that idea to compare an early-pay discount with a simple funding cost for bringing payment forward.
Original video