Calculate cash discount amount, payment after discount, original invoice amount, or discount percentage with calculation steps.
Available
Inputs
Enter values
Live
Calculate discount amountInvoice amount and discount rate yield the savings
€
The amount to which the cash discount is applied.
%
The discount rate in percent, for example 2 or 3.
Load example
For illustration only – your own calculation is what counts.
Explanation
How Cash Discount Calculator works
The cash discount calculator is part of the percentage and pricing family. It calculates a percentage deduction from an invoice amount.
The result shows discount amount, payment amount, original invoice amount, or discount rate. The calculation steps show the percentage deduction transparently.
Cash discount (Skonto) is a price reduction granted by a supplier to the buyer for payment within a short deadline. Typical invoice wording: Payable within 10 days with 2% discount, 30 days net. The discount rewards early payment and improves the supplier's liquidity.
Forgoing a cash discount can be viewed as short-term financing. A common commercial approximation relates the foregone discount to the payment amount and annualises it on a 360-day basis. It is a comparison metric, not an effective rate automatically determined by the calculator or a blanket recommendation: financing costs, liquidity and payment risks require separate review.
Discount amountS = R x s / 100
The discount amount S equals invoice amount R times discount rate s divided by 100.
Payment amountZ = R - S
The payment amount Z is the invoice amount minus discount amount.
Reverse calculationR = Z / (1 - s / 100)
When payment amount Z and discount rate s are known, the original invoice amount is calculated via the payment factor.
Discount percentages = S / R x 100
The discount rate s equals discount amount S divided by invoice amount R times 100.
Annualised commercial approximationInterest = (s / (100 - s)) x (360 / (payment term - discount period)) x 100
The approximation relates the foregone discount to the payment amount and scales the term difference to a commercial 360-day year.
Knowledge
Understanding cash discount
Cash discount is mathematically a percentage deduction, but typically tied to payment conditions.
For the pure calculation, the percentage formula suffices: Invoice amount times discount rate yields the discount amount. The payment amount is the invoice amount minus this savings.
Discount amount shows the absolute savings.
Payment amount shows what would be due after deduction.
Reverse calculation is only possible when the discount rate is below 100%.
Tax or accounting treatment depends on the specific case.
Practice
Practical examples
For illustration only – your own calculation is what counts.
Discount from invoice amount
From EUR 1,000 invoice amount and 2% discount, the payment amount after deduction results.
Result: The payment amount is 980, the discount amount is 20.
Comparing early payment
With EUR 750 and 3% discount, the savings from prompt payment become visible.
Result: The payment amount is 727.50, the savings amount to 22.50.
Purchase with discount terms
Cash discount is a price reduction for early payment and can be calculated like a percentage decrease.
Result: The payment amount is 2364.
Reverse invoice amount
From the paid amount and discount rate, the original invoice amount can be calculated.
Result: The original invoice amount is 1,000, the discount amount is 20.
Discount rate from amount
When invoice amount and discount amount are known, the discount percentage results.
Result: EUR 25 discount on EUR 1,250 equals 2% discount.
Notes
Common mistakes
Calculating discount on the wrong reference amount
The discount is calculated on the invoice amount, not on a partial amount or down payment. Calculating discount only on the net amount when the invoice names the gross amount as reference yields an incorrect payment amount.
Always use the reference amount stated on the invoice: Invoice EUR 1,190 gross, 2% discount = 1,190 x 0.02 = EUR 23.80 deduction.
Reading the annualised approximation as an exact effective rate
The 360-day extrapolation simplifies comparison and does not include every financing cost, liquidity consideration or payment risk.
State the metric and convention: (discount / (100 - discount)) x (360 / term difference) x 100. Then compare it with the financing conditions actually available.
Deducting discount after deadline expiry
A cash-discount deduction depends on the agreed payment condition. Once the agreed period has expired, the supplier may reject the deduction and request the difference.
Check the wording, start of the period and timely receipt of payment. If the condition is unclear or unmet, clarify the deduction with the contracting party.
Incorrectly calculating discount on partial payment
For partial payments, it is not always clear whether discount applies to the entire invoice or only to the partial payment. The contractual agreement is decisive.
Check the contractual terms. When in doubt, calculate discount only on the amount actually paid within the deadline.
Forgetting input tax correction when taking discount
When taking a discount, the input tax must also be proportionally corrected. Reducing only the payment amount while claiming full input tax results in incorrect accounting.
The discount amount is invoice amount times discount rate divided by 100. The payment amount is invoice amount minus discount amount.
Is cash discount the same as a regular discount?
Mathematically, cash discount is a percentage deduction. In practice, it is usually tied to early payment conditions.
Is discount calculated on the gross or net amount?
This depends on the contract, invoice, and tax treatment. The calculator computes the percentage deduction on the entered invoice amount.
Can I reverse-calculate the invoice amount before discount?
Yes. Select the reverse mode and enter payment amount and discount rate. With 100% discount, this reverse calculation is not unique.
How do you calculate the discount percentage from the discount amount?
The discount percentage is discount amount divided by invoice amount times 100. The discount amount must not exceed the invoice amount.
Is the result accounting or tax advice?
No. The calculator shows an indicative calculation for amount, deduction, and payment. Tax, contractual, or accounting questions must be assessed separately.
How can forgoing a cash discount be annualised?
A commercial approximation relates the foregone discount to the payment amount and scales it using 360 days. For 2% within 10 rather than 30 days, it is about 36.7% p.a. The metric depends on the terms and convention.
Is taking a cash discount always worthwhile?
No. Compare the actual saving and term difference with available financing costs, liquidity reserves and payment risks. The calculator provides amounts, not a blanket payment or financing decision.
Is discount applied to gross or net in practice?
In practice, discounts are often applied to the gross invoice amount. For tax purposes, however, the discount deduction must be proportionally allocated to the net amount and input tax amount.
What happens to VAT when taking a discount?
When a discount is taken, the assessment basis for VAT is reduced. The buyer must correct the deducted input tax, the seller the charged output tax. This is regulated by Section 17 UStG.
Limits
Limitations
No deadline calculation: The calculator computes only discount amount and payment amount. It does not check whether the discount deadline is met or calculate deadlines from invoice date.
No tax or accounting entries: Correct booking of discounts (reduction of acquisition costs, input tax correction) is not modeled. Accounting software is responsible.
No automatic effective interest comparison: The calculator shows the discount amount but does not automatically calculate the effective annual interest advantage versus the full payment term.
No contractual or legal advice: Whether a discount deduction is contractually permissible depends on the specific agreement. The calculator does not check terms and conditions.
Sources
Sources and references
UStG § 17 — Änderung der BemessungsgrundlageBundesministerium der Justiz
When a discount is taken, the VAT assessment basis changes. Section 17 UStG regulates the correction of output and input tax.
View sourceRetrieved: 06/20/2025 · Verified on: 07/23/2026 · Primary source
IHK — Skonto und Zahlungsbedingungen im GeschäftsverkehrIndustrie- und Handelskammer
The Chamber of Commerce places cash discounts in liquidity management and explains how payment terms affect early payment and receivables management.
View sourceRetrieved: 07/23/2026 · Verified on: 07/23/2026
Lieferantenkredit und SkontoverzichtDeutsche Bundesbank
The monthly report assesses the economic cost of forgoing a cash discount using a concrete payment-term example.
View sourceRetrieved: 07/23/2026 · Verified on: 07/23/2026 · Primary source
Cash discount and VAT frequently appear together in invoice questions.
Choose your course
You set the course.
Rechnerpilot counts views and actions anonymously – without cookies and without recognition – and improves through that regardless of your choice. In addition, you can allow Google Analytics, which is loaded only after your consent. You can change your choice at any time.
Your calculation inputs and results are transmitted on neither path.
