Your cash
The most you are willing to pay out early in total.
Your line-of-credit rate, or what the cash would otherwise earn.
Invoice 1
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 2
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 3
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 4
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 5
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 6
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 7
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 8
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 9
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 10
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 11
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 12
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 13
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
Invoice 14
Who it is from, for example Lumber yard.
The full amount due if you pay on the due day.
The 2 in 2/10 net 30.
The 10 in 2/10 net 30, counted from today.
The 30 in 2/10 net 30, counted from today.
An invoice needs an amount, a discount, a discount deadline and a due day. Leave an invoice blank to leave it out. Up to 14 invoices.
Result
Questions business owners ask
Is a 2/10 net 30 discount worth taking?
Almost always, if you have the cash: 2 percent for paying 20 days early is about a 37 percent annual return, far above what cash earns in a bank and above most credit lines. The harder question is which discounts to take when you cannot take them all.
How do I choose which invoices to pay early?
Each invoice has a benefit: the discount you keep less the interest on the cash that leaves your account earlier. You want the set with the biggest total benefit that fits in the cash you can spare. Ranking by annual rate is a good rule but can strand cash or skip a better combination. This tool tries every combination of up to 14 invoices.
What is my cost of cash?
The rate you pay to borrow, such as a line of credit, or the rate you would earn on the money otherwise. If you would have to draw on a line to pay early, use the line's rate.
What does the tool say about extra cash?
It re-solves with 25, 50 and 100 percent more cash and reports how much more net benefit each would add, so you can compare that with what bridging the cash would cost.
Is this accounting or financial advice?
No. It is arithmetic on the figures you type, with simple interest and one cash limit for every payment. Check each supplier's actual terms and your own cash-flow timing.
Not decided
Whether paying early strains your cash later in the month, the day-by-day timing of your receipts, supplier relationships, whether a supplier will honour a discount taken late, tax treatment, and compounding. Every payment is treated as made at once against a single cash limit.
Related tools: the invoice payment terms calculator, for one invoice at a time, and the subcontractor cash-flow planner.