Cash Discount Calculator
Calculate the discount amount, the final payment and the effective annual interest rate when you pay early instead of at the end of the term. Uses the classic 2 percent for 14 days, 30 days example.
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Legal notice
Current as of: 11.08.2026.
The results reflect the legal and fiscal state as of the date stated above. They are provided for general information and initial guidance only. They are not individual financial, tax or legal advice, and no guarantee is given as to their accuracy, completeness or suitability for your circumstances. In particular, the results are not a substitute for an official or judicial assessment. Please check the information independently and seek qualified advice where appropriate, as you are solely responsible for any decision made in reliance on the result.
Skonto Calculator: discount amount, payment amount, and effective rate
An invoice arrives with a cash discount attached, for example due in 30 days but with a 2 percent reduction if you pay within 14 days. Many people simply pay late and hand over free money. This Skonto calculator shows you what the offer is really worth by working out the discount amount, the payment amount, and the effective annual interest rate.
You enter the invoice amount, the discount rate, the discount period, and the payment term. The calculator returns the amount you save, the sum you actually transfer, and above all the effective interest rate, which is what your saving would amount to on a yearly basis. That way you immediately see whether paying early is worth it or whether your money is better off elsewhere.
Note: This calculation is for orientation and is not financial or tax advice. Payment terms and discount rules can differ depending on the contract and supplier. Please check the specific conditions in your individual case. As of: September 2026.
How it works
The Skonto calculator works with three connected values. From the invoice amount and the discount rate, it first derives the discount amount that may be deducted. Then comes the payment amount, the sum you actually transfer if you meet the deadline. Finally, it works out the effective interest rate, which projects the saving onto a full year.
- Enter the invoice amount, for example 1000 €.
- Enter the discount rate, commonly 2 percent.
- Enter the discount period and the payment term, for example 14 days and 30 days.
- The effective rate shows the annual return that paying early represents for you.
What it can and cannot do
The calculator suits entrepreneurs and freelancers who want to assess discount offers on invoices, as well as anyone who privately wants to understand what a cash discount is worth. It delivers the classic figures: discount amount, payment amount, and effective rate. Not taken into account are individual financing costs, liquidity headroom, or special conditions of particular contracts. For a complete decision, you should therefore factor in your own situation.
Frequently asked questions
What is Skonto?
Skonto is a price reduction a supplier grants when you pay an invoice within a short period. The common example is 2 percent discount for payment within 14 days on a 30-day payment term.
Why is the effective rate on Skonto so high?
Because the discount applies to a very short time frame. If you receive 2 percent for paying only 16 days early, you effectively earn that 2 percent several times a year, which works out to a high annual rate over twelve months.
How is the effective rate calculated?
The effective rate projects the saving from the discount onto a full year, based on the period between the discount deadline and the payment term. This lets you compare the discount with other investment or interest opportunities.
What is the difference between the discount amount and the payment amount?
The discount amount is the sum you may deduct, namely the invoice amount times the discount rate. The payment amount is what you actually transfer after the deduction.
Is paying early always worthwhile?
Usually yes, because the effective rate is typically far higher than common interest rates on credit. It can look different, however, if you cannot free up the liquidity or have better uses for the money. The calculator helps you weigh that up.
Who is the Skonto calculator for?
Mainly for entrepreneurs, traders, and freelancers who want to assess invoices with discount rules. But it is also worth looking at the effective rate privately to understand what a cash discount offer is really worth.