Invoice Payment Calculator

Early pay discount vs. late fee trade-off analysis

What is this? Compare early payment discounts vs late fees. See the true annual cost of supplier credit terms and optimize your cash flow strategy.

Who it's for: Business professionals, investors, and anyone making financial decisions.
Invoice Details
Terms
Decision Analysis
Days Late
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Early Pay Discount
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Net Amount Due
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Late Fee Cost
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Annualized Cost of Skipping
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Should Take Discount?
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For educational purposes. Not financial advice.

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Frequently Asked Questions

What payment terms should I offer?

Net 30 is standard for most B2B. Net 15 or Net 7 for smaller clients or faster payers. Offering 2/10 Net 30 (2% discount for payment in 10 days) incentivizes early payment without being too generous.

How do I handle late payments?

Send a polite reminder at 7 days. A firm follow-up at 30 days. A second follow-up at 45 days. At 60 days, consider suspending services or engaging a collections agency. Always have a written contract with clear payment terms before starting work.

What are the best invoicing tools?

FreshBooks, HoneyBooks, and Wave are popular for freelancers. Stripe and PayPal offer embedded invoicing. Bonsai and AND.CO include contract management. Choose based on whether you need time tracking, expense management, and integration with your accounting software.