Early invoice payment discount calculator UK
Compare cash saved by an early payment discount with its simple annualised funding value. Check the formula, worked example and limits before using your own figures.
Enter your figures
Cash discount
Inputs changed. Select Calculate result to update your estimate.
Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Not an APR or recommendation to use credit. Compare liquidity and funding costs separately; the annualised measure assumes the same opportunity could recur.
How the early invoice payment discount calculator uk works
Discount cash = invoice × discount. Simple annualised rate = discount ÷ discounted cash payment × 365/days.
Data basis: mathematical formula using your inputs. Example prices and rates are illustrative, not current market quotes.
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Worked example: early invoice payment discount
This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.
- Invoice amount before discount (£)
- 5,000
- Discount offered (%)
- 2
- Days earlier than normal payment
- 20
Cash discount: £100.00
Discount cash = invoice × discount. Simple annualised rate = discount ÷ discounted cash payment × 365/days.
Early invoice payment discount: questions answered
What does the early invoice payment discount calculation include?
Discount cash = invoice × discount. Simple annualised rate = discount ÷ discounted cash payment × 365/days. Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Not an APR or recommendation to use credit. Compare liquidity and funding costs separately; the annualised measure assumes the same opportunity could recur.
Using your result
Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.
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