Free tool
Early-Payment Discount Calculator: Compare Credit Cost
Days are measured from the same starting date. Annualised rates assume a 365-day year; effective cost assumes repeated compounding. Do not use overdue or legally impermissible payment terms.
Use your own assumptions. Inputs stay on your device and are not submitted or saved. Checked: October 2026.
Calculation basis
Period rate = discount % ÷ (100 − discount %). Simple annual rate = period rate × 365 ÷ days accelerated. Effective annual rate = (1 + period rate)^(365 ÷ days accelerated) − 1.
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