Typed example, not a recommended term: $5,000 at 2/10 net 30 is a $100 discount, $4,900 if they pay early, and a 37.24% implied annual rate.
Updated Oct 2026
(0.02 ÷ 0.98) × (365 ÷ 20) = 37.24%. Discount deadline is invoice date + 10 days. Net due is invoice date + 30 days.
Discount = invoice × the percent you type. Early pay = invoice − discount. Implied annual = (d ÷ (1 − d)) × (365 ÷ (net days − discount days)). Processor keep, if you pick one, uses the locked rates on Stripe and PayPal invoices: keep = early pay − (early pay × percent + fixed).
It is notation: 2% off if paid within 10 days, otherwise the full invoice is due in 30 days. The numbers on this page are whatever you type.
Implied annual rate = (discount percent ÷ (1 − discount percent)) × (365 ÷ (net days − discount days)). On 2/10 net 30 that is (0.02 ÷ 0.98) × (365 ÷ 20) = 37.24%.
This page does not recommend one. Compare the implied annual rate here with the interest on the late-fee interest calculator.
Use whichever base the invoice states. This page applies the percent to the invoice amount you type.
Compare the discount dollars here with the advance on the invoice-factor page. This page does not pick a winner.