Payment terms calculator

Worksheet

What a settlement discount comes to in money, and what would be paid if it is taken.

It reads your terms, it does not price credit

A settlement discount looks like a small number and is usually not one, which is why people want it annualised. That conversion produces an effective interest rate, and an effective interest rate is a lending figure. This sheet stops at what the discount is worth in money.

The days are recorded, not counted

“2/10 net 30” goes on the sheet as written. No date is calculated from it, because the date that governs is the one on the invoice and the terms that govern are the ones in your agreement.

Whole cents, per invoice

Each invoice is discounted and rounded on its own line, so the column adds up to the total printed underneath it rather than differing by a cent.

Alongside this: Invoice · Vendor bills · AR aging

A worksheet that does arithmetic on figures you entered. It calculates no interest, APR, effective rate, finance charge or late fee, and gives no financial, credit or tax advice. Everything runs on your device.

Questions people ask

Why will it not work out the annualised cost?
Because that figure is an effective interest rate, and converting a trade discount into one turns a tool for reading your own terms into a lending calculation. This product does not compute interest, APR or a finance charge anywhere, and this page is not the place it starts.
What do the days boxes do?
They record the terms as written — ten days to earn the discount, thirty to pay in full — so the sheet prints what was agreed. Nothing is counted from them and no due date is calculated: the dates on your invoice are the dates that matter.
Does it decide whether to take the discount?
No. It tells you what the discount is worth in money and what would go out if you took it. Whether that is a good use of your cash depends on what else the money would do, which is not something on this device.
Can I use it for discounts I offer, not just ones I am given?
Yes — the arithmetic is the same in both directions. Put your own terms in the header and your own invoices in the rows.
Does it add late fees?
No. It applies no late fee, no interest and no finance charge. What you may charge on a late payment comes from your contract and from the law where you are.