Salary & Taxes

Cash discount calculator

Payment amount after deduction of the discount.

Updated on Apr 21, 2026 Calculator, calculation path and examples on one page

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Calculator

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Calculation path

Step by step

  1. Calculate the discount amount

    Formula: Cash discount = invoice amount × cash discount / 100

    Values inserted: €1,250.00 × 2% / 100

    Result: €25.00

  2. Determine the payment amount

    Formula: Payment amount = invoice amount − discount

    Values inserted: €1,250.00 − €25.00

    Result: €1,225.00

Instructions

How to use this calculator correctly

How to use the calculator

  • Enter invoice amount.
  • Enter discount rate.
  • Check payment amount and savings.

Common mistakes

  • Do not confuse cash discount with payment term.
  • Do not confuse net and gross invoices.

Limits of the calculation

  • The calculator does not take payment deadlines or reminders into account.

Related guide: VAT, discounts and cash discounts simply explained

Examples

Typical calculations

1,250 euros invoice with 2 percent discount.

2% discount

Payment amount: €1,225.00

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4,890 euro bill with 3 percent.

3% discount

Payment amount: €4,743.30

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199 euro bill with 1.5 percent.

Small amount

Payment amount: €196.02

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FAQ

Frequently asked questions

Is cash discount the same as discount?

No. Cash discount is a price reduction for quick payment, discount is usually a general price reduction.

Does the calculator calculate net or gross?

It calculates with the entered invoice amount. The decisive factor is whether your invoice is issued net or gross.

Can I compare multiple discount rates?

Yes, change the percentage and compare the payment amounts directly.

Why is the discount often only a few percent high?

Even small percentages can be noticeable when the invoice amounts are high.

Is the calculator suitable for offers and payment terms?

Yes, especially for quickly evaluating discount offers.

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VAT calculator

Calculate net, gross and VAT directly using the calculation method.

Sources and notes

Rule status and context

Formula
Payment amount = invoice amount × (1 − cash discount / 100)