Tax & Discounts
Early Payment Discount Calculator
See the deadlines, savings and true annual return of an early-payment discount like 2/10 net 30.
Result
Pay by (to get the discount)
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Net due date
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Discounted amount
$980.00
Amount saved
$20.00
Annualized return of paying early
37.24%
Verdict
Take the discount — it beats your cost of capital.
How it's calculated
Annualized return = discount ÷ (100 − discount) × 365 ÷ (net days − discount days). For 2/10 net 30 that is about 37% a year. If it beats your cost of capital, paying early is the better deal.