Early Payment Discount (2/10 Net 30) Calculator
Calculate the effective annual rate of an early payment discount such as 2/10 net 30, to decide whether to pay early or take the credit.
Your numbers
- Discount amount
- $400
- Amount if paid early
- $19,600
- Early
- On time
How the early payment discount (2/10 net 30) calculator works
Annualized cost = (discount ÷ (1 − discount)) × (365 ÷ (net days − discount days)).
Example
Using the default inputs (Invoice amount: $20,000; Discount: 2%; Discount days: 10; Net days: 30), the calculator returns annualized return on paying early of 37.24%. Change any field above to see your own result and charts update instantly.
Good for these goals
Frequently asked questions
Is 2/10 net 30 a good deal?
It equals roughly a 37% annualized return for paying 20 days early, so paying early usually beats most financing.
Should I offer a discount?
Offering one costs you the discount but speeds cash; compare it with your cost of capital.
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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.