Payment terms calculator
Enter an invoice's date, amount and terms. It works out the due date and the discount deadline, what skipping the discount costs a year, what a late fee comes to, and the day to pay, with the reason.
Everything is worked out in this page, and nothing you type is kept. This page may count the visit and a click on Try it on your bills, by its address. What you paste or type is never sent.
Work out an invoice
A label only.
As the invoice writes them, such as 2/10 net 30, net 45 or net 30 EOM.
In percent. Weighed against the discount to pick the day to pay; blank counts as 0%.
If the contract charges a late fee
As the contract states it: a percent a month, or a fixed amount.
Days after the due date before the fee applies.
Late fee is
Charged
A month counts as 30 days.
The monthly percent × 12 ÷ 365, for each day.
The fee this many days after the due date, besides 7, 30 and 60.
How it works
Dates count every calendar day from the invoice date. With EOM terms, short for end of month, they count from the last day of the month the invoice is dated in: net 30 EOM on an invoice of Nov 2 is due Dec 30.
2/10 net 30 takes 2% off when you pay within 10 days; otherwise the full amount is due in 30. On 100, that is 98 on day 10 or 100 on day 30, so skipping the discount is like borrowing 98 for 20 days and paying 2 for it. As a yearly rate, that is 2 ÷ 98 × 365 ÷ 20 = 37.2% simple on a 365-day year, 36.7% on the 360-day year some lenders use, and 44.6% compounded. Lenders and textbooks state it on different bases, so all three are shown, each with its formula.
The break-even rate is the simple 365-day figure. If your cash earns, or your borrowing costs, less than it, paying by the discount deadline comes out ahead.
The day to pay comes from the written payment policy Vestiarion's agent is checked against: take a discount on its last day when it is worth at least what the cash would earn to the due date, otherwise pay on the due date, and pay a bill that is due or overdue at once. The sentence under it is the policy's own, with your rate applied to the discounted amount, the cash paying early would use, so the day changes exactly at the break-even rate.
A late fee is worked out as the contract charges it: a percent a month for each month or part of one, a month counted as 30 days; a percent a month by the day, at the monthly percent × 12 ÷ 365 for each day; or a fixed amount, once. It starts the day after the due date, after any days of grace, and is charged on the amount alone.
What it does not do
- It does not read your invoice or contract: it works from what you type.
- It does not know the rules on late fees where you are, which can limit them. It charges only the fee you enter.
- It does not move a due date that falls on a weekend or holiday, or roll an invoice dated late in a month into the next one.
- It does not convert currencies: the currency is a label.
Common payment terms
- 2/10 net 30
2% off if you pay within 10 days of the invoice date; otherwise the full amount is due 30 days after the invoice date.
- 1/10 net 30
1% off if you pay within 10 days of the invoice date; otherwise the full amount is due 30 days after the invoice date.
- 2/10 net 60
2% off if you pay within 10 days of the invoice date; otherwise the full amount is due 60 days after the invoice date.
- 3/10 net 30
3% off if you pay within 10 days of the invoice date; otherwise the full amount is due 30 days after the invoice date.
- net 30
The full amount is due 30 days after the invoice date.
- net 60
The full amount is due 60 days after the invoice date.
- net 30 EOM
The full amount is due 30 days after the last day of the month the invoice is dated in.
Your AI agent for bills and payments
Vestiarion's agent checks every bill before it is paid, weighs an early-payment discount against holding the cash to the due date, and pays in USDC within the limits you set.
In shadow mode it decides on your real bills while you keep paying them as you do now.