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Pricing & Margins

Cash Discount Calculator

Find savings from early payment cash discounts, common in FMCG trade for 2/10 net 30 terms — and see the annualised cost of skipping it.

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About the Cash Discount Calculator

Content reviewed 6 August 2026

A cash discount rewards early payment — pay within 10 days and take 2% off, versus the full amount at 30. It's a staple of FMCG trade terms, written as '2/10 net 30'.

The discount looks small, but skipping it to hold cash is expensive: forgoing 2% to delay payment by 20 days works out to roughly 37% annualised — far dearer than most working-capital loans.

Worked example

₹25,000 invoice at 2% cash discount: pay ₹24,500 now and save ₹500, or pay ₹25,000 later. The ₹500 you 'earn' in 20 days is why early payment usually beats holding the cash.

Frequently asked questions

Is a cash discount worth taking?+

Almost always, if you have the cash. The annualised return on a 2/10 net 30 discount is around 37% — you'd rarely earn that elsewhere, and it beats the cost of most business credit.

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