Enter invoice and terms
For faster entry, choose a preset, then adjust as needed.
Sample invoices and outcomes
Use these rows to validate your workflow or train staff on payment policy.
| Invoice | Amount | Terms | Invoice Date | Discount Date | Due Date | Pay If Discounted |
|---|---|---|---|---|---|---|
| INV-1001 | PKR 100,000.00 | 2/10 Net 30 | 2026-02-01 | 2026-02-11 | 2026-03-03 | PKR 98,000.00 |
| INV-1002 | USD 5,750.00 | Net 45 | 2026-01-15 | — | 2026-03-01 | USD 5,750.00 |
| INV-1003 | EUR 22,400.00 | 3/15 Net 45 | 2026-02-10 | 2026-02-25 | 2026-03-27 | EUR 21,728.00 |
How calculations work
- Discount Date = Invoice Date + Discount Days
- Due Date = Invoice Date + Net Days
- Due + Grace = Due Date + Grace Days
- Discount Amount = Invoice Amount × (Discount % / 100)
- Pay If Discounted = Invoice Amount − Discount Amount
- Late Fee uses late days and your clause
This helps evaluate whether taking the discount is financially attractive.
Steps for contract-ready results
- Enter the invoice amount, currency, and invoice date.
- Select a preset term or choose Custom.
- Confirm discount days, net days, and any grace window.
- Optionally add a payment date and late-fee clause details.
- Press Submit, then download CSV or PDF for your file.
Cash flow clarity for contract teams
Payment terms influence working capital, vendor satisfaction, and dispute risk. This calculator converts term language into dated milestones so procurement and finance can align approvals. For example, a Net 30 clause defines a due date, while an early-pay discount adds a separate discount deadline. When these dates are explicit, teams reduce missed discounts, avoid late-fee surprises, and document exceptions with consistent evidence.
Discount economics and decision support
Early-payment discounts can be evaluated like an investment return. The implied annual rate metric estimates the cost of skipping the discount and paying at the net date. A 2% discount within 10 days versus Net 30 often implies a high annualized rate, which may exceed typical borrowing costs. Use this data to decide whether to prioritize early payment, negotiate a higher discount, or request longer net terms when cash is constrained.
Late-fee clauses and enforceable calculations
Many agreements specify late charges as monthly percentages, daily percentages, annual rates pro-rated daily, or a flat fee. This calculator supports each method and applies a grace window before penalties begin. Late days are measured after the “due plus grace” date, matching common contract drafting patterns. Recording the chosen method and rate creates a clear audit trail for accounts payable reviews and supplier escalations.
Standardization across presets and custom terms
Presets like Net 30 or 2/10 Net 30 help teams standardize policy and reduce manual data entry errors. Custom fields remain available for non-standard clauses, milestone-based variations, or negotiated grace periods. By using the same calculation rules across invoices, you can compare supplier performance, measure average days to pay, and build stronger term benchmarks during renewals and vendor onboarding.
Export-ready outputs for approvals and records
Contract workflows often require evidence attached to purchase orders, ticketing systems, or shared folders. The CSV export supports spreadsheet analysis and reporting, while the PDF export provides a printable summary for sign-offs. Saving the output alongside the executed agreement helps resolve disputes faster, especially when payment timing, discounts, or late fees are contested. Use exports consistently to strengthen compliance and reduce rework.
FAQs
1) What does “2/10 Net 30” mean?
It means you can take a 2% discount if paid within 10 days of the invoice date; otherwise, the full amount is due within 30 days.
2) How is the discount date calculated?
The calculator adds “Discount Days” to the invoice date. Paying on or before that date applies the discount to the invoice amount.
3) What is the purpose of a grace window?
Grace days extend the payment deadline before late fees begin. This can reflect internal approval cycles or negotiated flexibility with vendors.
4) How are monthly late fees handled?
Late days are converted into 30-day blocks and rounded up, so partial months count as a full month, which aligns with many contract enforcement practices.
5) Why does the calculator show an implied annual rate?
It estimates the annualized cost of skipping an early-pay discount. This helps compare discount value against financing costs and cash priorities.
6) Can I export results without re-entering inputs?
Yes. After you submit once, the calculator stores the latest result in your session so the CSV and PDF downloads reflect that last calculation.