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THE FEUTEX TOOLKIT

Early Payment Discount Trade-off

Compare a supplier discount with the simple financing cost of paying early.

Business workspace● Runs in your browser
01 Your input
02 Your result
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FormulaDiscount saved = v.invoice*v.discount/100 ; Funding cost = v.invoice*(1-v.discount/100)*v.annual_funding/100*(v.normal_days-v.early_days)/v.basis ; Net benefit = v.invoice*v.discount/100-v.invoice*(1-v.discount/100)*v.annual_funding/100*(v.normal_days-v.early_days)/v.basis
Sources and model references

Worked example

Inputs

Invoice
10000 currency
Discount
2 %
Early days
10 days
Normal days
30 days
Annual funding
12 %
Basis
365 days

Expected results

Discount saved
200 currency
Funding cost
64.43835616 currency
Net benefit
135.5616438 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

  1. Enter your own assumptions using a consistent currency and period.
  2. Review the scenario outputs and compare alternative inputs.
  3. Check the stated model limits before using the result in an operating plan.

Try this example

{
  "invoice": 10000,
  "discount": 2,
  "early_days": 10,
  "normal_days": 30,
  "annual_funding": 12,
  "basis": 365
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.