Examples
Examples
Try the starting example
- Invoice face amount ($)
- 1000
- Entered early-payment discount (%)
- 2
- Discount payment day after invoice
- 10
- Full-payment day after invoice
- 30
- Annualisation day basis
- 365
- Entered annual simple funding cost (%)
- 10
- Discount saved ($)
- $20.00
- Discounted payment ($)
- $980.00
- Simple annualised discount return (%)
- 37.244898
- Compounded annualised discount return (%)
- 44.585293
- Funding-cost illustration for earlier payment ($)
- $5.37
- Discount less illustrated funding cost ($)
- $14.63
Try another scenario
- Invoice face amount ($)
- 1000
- Entered early-payment discount (%)
- 2
- Discount payment day after invoice
- 10
- Full-payment day after invoice
- 30
- Annualisation day basis
- 365
- Entered annual simple funding cost (%)
- 50
- Discount saved ($)
- $20.00
- Discounted payment ($)
- $980.00
- Simple annualised discount return (%)
- 37.244898
- Compounded annualised discount return (%)
- 44.585293
- Funding-cost illustration for earlier payment ($)
- $26.85
- Discount less illustrated funding cost ($)
- -$6.85
Calculation method
Calculation method
Discount saved ($)
Round face×discount share to US cents.
Discounted payment ($)
Face−discount saved.
Simple annualised discount return (%)
100×[discount/(1−discount)]×day basis/(full day−discount day), using the entered share rather than a rounded cash ratio.
Compounded annualised discount return (%)
100×expm1(−log(1−discount)×day basis/day gap).
Funding-cost illustration for earlier payment ($)
Discounted cash payment×entered annual funding share×day gap/day basis, rounded to US cents.
Discount less illustrated funding cost ($)
Saved cash discount−funding-cost illustration; no recommendation is inferred.
Symbols and units
- a
- Invoice face amount ($)
- b
- Entered early-payment discount (%)
- c
- Discount payment day after invoice
- d
- Full-payment day after invoice
- e
- Annualisation day basis
- f
- Entered annual simple funding cost (%)
Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.
Assumptions & limits
Assumptions & limits
- A trade-credit discount arithmetic comparison under supplied timing and funding assumptions. It excludes taxes, fees, liquidity constraints and counterparty risks; rates are not current financing offers.
Are these inputs private?
These calculations run in your browser. A shared link contains the values you choose to share. Only questions submitted to the separate AI finder are sent to OpenAI.
Further reading
OpenStax: trade credit and supplied early-payment terms ↗
Background reading; this does not imply endorsement or independent review of SumFizz.