How it works
The cost of not taking a discount is annualised relative to the discounted amount and the days of payment deferral. This form solves for simple annual cost threshold; enter the known quantities in Early-payment discount, Normal payment term, Discount payment term.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Early-payment discount | 2 % | Formula symbol: discount. Enter the percentage as a number: for 15%, enter 15. Must be greater than zero. Allowed range: 0.001–99.999. |
| Normal payment term | 30 d | Formula symbol: normal. Required unit: d. Must be greater than zero. Allowed range: 0.001–3,650. |
| Discount payment term | 10 d | Formula symbol: early. Required unit: d. Use a non-negative value. Allowed range: 0–3,650. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Early-payment discount
- 2 %
- Normal payment term
- 30 d
- Discount payment term
- 10 d
Complete example results
- Simple annual cost threshold
- 37.24489796 %
Reading the result
The result solves for simple annual cost threshold from the entered quantities. Check the result unit and the formula conditions before using it.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
When can I use the simple annual cost threshold result?
This is a simple 365-day comparison, not compounded investment return or a loan APR. Normal terms must exceed early-payment terms.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: uomustansiriyah.edu.iq