Business
Supplier early-payment discount Calculator
Compare a supplier discount with the funding cost of paying early. This free supplier early-payment discount calculator shows the calculation and its assumptions so you can compare your own figures.
Your results
Compare a supplier discount with the funding cost of paying early.
Calculated outcomes
- Discount Saving
- €200.00
- Funding Cost
- €42.96
- Days Advanced
- 20
Assumptions and estimates
- Annualised return is a simple annual equivalent of the discount, not compound APR. Funding uses actual days over 365; check the supplier's invoice and your borrowing terms.
- Method: Annualised discount return = discount ÷ (1 − discount) × 365 ÷ days advanced. Net benefit deducts simple funding interest.
- The annualised rate is not compound APR; contractual eligibility and available liquidity matter.
Useful next steps
- Use Compare options to test an alternative side by side.
- Copy, print or download a record of this calculation when you need one.
Reports open your email app addressed to s@s1.ie with the public page address only. Your inputs are never added.
How the supplier early-payment discount calculation works
Annualised discount return = discount ÷ (1 − discount) × 365 ÷ days advanced. Net benefit deducts simple funding interest.
The annualised rate is not compound APR; contractual eligibility and available liquidity matter.
Using this calculator
- Enter your own figures in the labelled inputs. Keep the currencies, units and time periods consistent.
- Choose any applicable rate profile, pattern or assumption shown for this tool. Open additional inputs when relevant.
- Review net benefit and annualised discount return percent and early payment amount, then read the stated assumptions and eligibility conditions before using the result.
Worked example
This is a static example using illustrative inputs, not facts about you or today’s date. The displayed eligibility selections and assumptions apply only to this example.
See example inputs
- Invoice amount (€)
- 10000
- Early payment discount (%)
- 2
- Early payment term (days)
- 10
- Normal payment term (days)
- 30
- Annual funding rate (%)
- 8
- Net Benefit
- €157.04
- Annualised Discount Return Percent
- 37.24%
- Early Payment Amount
- €9,800.00