MCPCalc

Invoice Payment Terms Calculator

Calculate invoice payment terms with Net 30/60/90 and early payment discounts.

Scratchpad (not saved)

$

Total invoice amount

Days until payment is due

%

Discount for paying early (e.g., 2% for 2/10 net 30)

days

Days within which to pay to get the discount

% per month

Monthly late fee percentage

What This Calculator Does

Calculate invoice payment terms with Net 30/60/90 and early payment discounts.

It combines Invoice Amount, Payment Terms, Early Payment Discount, Discount Window (days) to estimate Early Payment Amount, Discount Savings, Terms.

Formula & Method

Core equations: Early payment amount: P_{early} = A(1 - d) where A is the invoice amount and d is the discount rate. The annualized cost of forgoing the discount is: \text{Cost} = \frac{d}{1 - d} \times \frac{365}{\text{Days Forgoing}} \times 100 Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Early Payment Amount; x_{1} = Invoice Amount; x_{2} = Payment Terms; x_{3} = Early Payment Discount; x_{4} = Discount Window (days); x_{5} = Late Fee.

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this calculator for quick scenario analysis. Start with baseline values, change one driver at a time, and compare how sensitive the results are to each input shown above.

Inputs Used

  • Invoice Amount: Total invoice amount
  • Payment Terms: Days until payment is due
  • Early Payment Discount: Discount for paying early (e.g., 2% for 2/10 net 30)
  • Discount Window (days): Days within which to pay to get the discount
  • Late Fee: Monthly late fee percentage

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