€
%
days
days

The payment term must be longer than the discount period for the effective annual interest rate to be calculated.

%

If you would have to borrow to pay early. 0 = from your own money.

Amount due with discount

€980.00

€980.00

If you pay within 10 days, you pay €980.00 instead of €1,000.00 and save €20.00.

Of the invoice amount

  • Amount due€980.0098%
  • Discount amount€20.002%
  1. Day 0Invoice
  2. Day 10Discount period ends: €980.00
  3. Day 30Payment term: €1,000.00
How this was calculated
Discount amount = €1,000.00 × 2% = €20.00
Amount due = €1,000.00 − €20.00 = €980.00
Effective annual interest rate = 2 ÷ (100 − 2) × 360 ÷ 20 × 100 = 36.73%

The effective annual interest rate treats skipping the discount as a loan: you "borrow" the amount due for the days between the discount period and the payment term (banking year of 360 days).

What you can do

  • Effective annual interest rate if you skip the discount36.73%

    If you do not take the discount, the 20 days of extra payment time cost you the equivalent of 36.73% interest per year.

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