Early Payment Discount
Calculator

Decode payment terms like "2/10 Net 30". See the true annualized cost of offering Early Payment Discounts, and then decide if it makes financial sense.

Analyze your payment terms

I'm a supplier

I'm a buyer

As a buyer, this shows you the annualized return you earn by paying early — and how to get flexible payment terms even if your supplier doesn't offer them.

As a supplier, this shows you the true cost of offering an early payment discount — and how B2B BNPL lets you get paid on Day 1 without giving up revenue.

Invoice Amount (AED)

Discount Percentage (%)

Discount Window (days)

Full Payment Terms (days)

Analyze Terms

Supplier Cost Analysis

Offering this discount costs you {percentage} % annually — that's very expensive financing!

Annualized Cost of This Discount

{percentage}%

Revenue you give up per invoice

AED {amount}

You receive (after discount)

AED {amount}

Days of cash acceleration

{days}

Annual cost (if repeated monthly)

AED {amount}

You save

AED {amount}

You pay

AED {amount}

Cash deployed early

{days}

Annual savings

AED {amount}

Understanding Early Payment Discounts

Early payment discounts (also called prompt payment discounts) are incentives offered by suppliers to encourage buyers to pay invoices before the full due date. The most common format is "2/10 Net 30", meaning a 2% discount if paid within 10 days, otherwise the full amount is due in 30 days.

How to Read Payment Terms

Terms

1/10 Net 30

2/10 Net 30

2/10 Net 60

3/10 Net 60

Discount

Pay Within

10 days

Or Full By

30 days

60 days

Annualized Cost

18.4%

36.7%

14.9%

22.6%

The Hidden Cost of Offering Discounts

Annualized Cost = (Discount % ÷ (100% − Discount %)) × (365 ÷ (Full Terms − Discount Window))

A seemingly small 2% discount on 2/10 Net 30 terms actually equates to a 36.7% annualized cost for the supplier. That's more expensive than most business loans, credit cards, or lines of credit. A better option: offer your buyers B2B Buy Now Pay Later through Comfi. You get paid in full on Day 1, while your buyer gets 30–90 day terms. No discount needed.

How do suppliers benefit from using B2B BNPL

Perspective

Financial impact

Cash flow effect

Annualized rate

Using B2B BNPL

36% Revenue saved annually

100% of invoice amount received on Day 1

18-25%

Offering early payments discount

Losing 36% revenue annually

98% of invoice amount received on Day 1

More than 36%

Common industries using B2B BNPL instead of early payment discounts

Food & Beverage

Get the capital you need to grow in peak demand seasons.

Construction

Great construction businesses are built on strong cash flow foundations. Comfi lays them.

Professional Services

Get paid faster on long client payment cycles while delivering projects smoothly.

Electrical & Appliances Wholesale

Stock more, serve more, and scale without limits.

IT Solutions & Services

Cover payroll and project costs while clients pay on extended credit terms.

Industrial Equipment

Don't let delayed payments stall your production line.

Agriculture Wholesale

Agriculture wholesale businesses grow when cash flow is as reliable as the harvest.

⚖️ Annualized Cost Comparison

2/10 Net 30 discount: ~36.7%

Business credit card: ~24% APR

Bank overdraft: ~12–18% APR

B2B BNPL: Much lower

UAE savings account: ~4–5% APR

Stop losing 36% annually on discounts

With Comfi's B2B Buy Now Pay Later, suppliers get paid Day 1 and buyers get 30–90 day terms. No discounts needed.

Comfi Products

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Case Studies

See how businesses like yours are using Comfi to unlock growth.

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case studies

See what Comfi can do for you

Learn how Comfi can help you unlock working capital so you can grow without delays.

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Comfi invoice discounting platform dashboard showing payment schedules, credit limit, and invoice status

Frequently asked questions about Comfi

What does "2/10 Net 30" mean?

It means: pay within 10 days and get a 2% discount. Otherwise, the full amount is due in 30 days. The "2" is the discount percentage, "10" is the discount window, and "30" is the full payment term.

Why is a 2% discount actually 36.7% annualized?

Because you're paying 2% to access cash just 20 days early. If you repeated this 18.25 times per year (365 ÷ 20 days), the cost compounds to ~36.7%. That's the true cost of the financing when viewed annually.

Should I take the discount as a buyer?

Almost always yes, if you have the cash. A 2/10 Net 30 discount earns you 36.7% annualized on the cash you deploy early. That's a better return than virtually any other low-risk investment. Only skip it if using that cash elsewhere earns you more.

Should I offer early payment discounts as a supplier?

Usually not, it's very expensive financing. A 2/10 Net 30 discount costs you 36.7% annualized. Invoice discounting through Comfi gives you cash within hours at a fraction of that cost, without reducing your invoice value.

How do I negotiate better payment terms?

Start by understanding the true cost of current terms using this calculator. If you're a supplier offering 2/10 Net 30, you're paying 36.7% for cash acceleration and you can use that number in negotiations. A better approach: offer your buyers B2B Buy Now Pay Later through Comfi. You get paid on Day 1 in full, while your buyer gets flexible 30–90 day terms. No discount needed.