{"id":105,"date":"2015-05-29T09:38:06","date_gmt":"2015-05-29T07:38:06","guid":{"rendered":"http:\/\/wpcalc.com\/?p=105"},"modified":"2025-05-09T14:11:58","modified_gmt":"2025-05-09T11:11:58","slug":"discount-lost","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/discount-lost\/","title":{"rendered":"Discount Lost Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 class=\"text-lg font-display font-bold\">Cost of Lost Payment Discount Tool<\/h2><\/div><div class=\"relative group inline-block\">\n  <button class=\"favorite\" id=\"favorite\" data-favorite-id=\"105\" data-favorite-title=\"Discount Lost\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/discount-lost\/\" data-favorite-excerpt=\"The Discount Lost calculator estimates the financial cost of not taking advantage of early payment discounts. It\u2019s an essential tool for businesses to evaluate the true cost of delayed payments and make smarter cash flow decisions.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-storage-unit\">\n    <span class=\"icon icon-shape-star-empty\"><\/span>\n  <\/button>\n  <div class=\"absolute right-full -translate-y-1\/2 top-1\/2 mr-2 w-max max-w-xs px-3 py-2 bg-gray-800 text-white text-xs rounded shadow-lg opacity-0 group-hover:opacity-100 transition-opacity duration-200 z-10 pointer-events-none\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/discount-lost\/\" method=\"POST\" class=\"calculator\" id=\"calculator-105\" data-post=\"105\"><fieldset class=\"fieldset-input is-1\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field has-term\" id=\"input-1\"><label for=\"field-1\">Discount percentage<\/label><div class=\"term\">D<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"discount_percentage\" id=\"field-1\" min=\"0\" step=\"0.01\" value=\"2\"\/><div class=\"unit\">%<\/div><small>Offered early payment discount percentage (e.g., 2 for 2%)<\/small><\/div><div class=\"field has-term\" id=\"input-2\"><label for=\"field-2\">Discount period (days)<\/label><div class=\"term\">d<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"discount_period_days\" id=\"field-2\" min=\"1\" step=\"any\" value=\"10\"\/><small>Number of days within which the discount is valid<\/small><\/div><div class=\"field has-term\" id=\"input-3\"><label for=\"field-3\">Full payment period (days)<\/label><div class=\"term\">f<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"number\" name=\"full_payment_period_days\" id=\"field-3\" min=\"1\" step=\"any\" value=\"30\"\/><small>Total days allowed to pay the invoice<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"105\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Discount Lost<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"% (annualized)\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-2\"><span class=\"field-title\"><span>Interpretation<\/span><\/span><span class=\"field-value\" id=\"result-2\"><\/span><button class=\"copy-result\" data-tooltip=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\"><\/span><\/button><\/div><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"105\" aria-live=\"polite\"><h2 class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/h2><div class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">1<\/span><span class=\"reaction text-3xl\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><ins class=\"adsbygoogle\"\n     style=\"display:block; text-align:center; margin: 32px 0;\"\n     data-ad-layout=\"in-article\"\n     data-ad-format=\"fluid\"\n     data-ad-client=\"ca-pub-1721569815777345\"\n     data-ad-slot=\"6317458308\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n<section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Discount Lost Opportunity Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n$$\\text{Discount Lost (\\%)} = \\frac{\\text{Discount \\%}}{1 &#8211; \\text{Discount \\%}} \\times \\frac{360}{\\text{Full Payment Due Days} &#8211; \\text{Discount Period}}$$\n<\/div>\r\n\t<\/figure>\r\n\t<br \/>\n<strong>Explanation:<\/strong><br \/>\nThis formula calculates the annualized cost of not taking a purchase discount. It helps determine if borrowing funds to take advantage of early payment terms is financially wiser than paying late.<br \/>\r\n<\/section>\n<p>When suppliers offer terms like <strong>2\/10, net 30<\/strong>, it means a 2% discount is available if payment is made within 10 days; otherwise, the full amount is due in 30 days. If the buyer does not pay early, the discount is lost \u2014 essentially a high implicit interest rate.<\/p>\n<p><strong>Example Variables:<\/strong><\/p>\n<ul>\n<li>Terms: 2\/10, net 30<\/li>\n<li>Discount %: 2%<\/li>\n<li>Discount Period: 10 days<\/li>\n<li>Full Payment Due: 30 days<\/li>\n<\/ul>\n<p><strong>Calculation:<\/strong><\/p>\n<ul>\n<li>= (0.02 \/ (1 &#8211; 0.02)) \u00d7 (360 \/ (30 &#8211; 10))  <\/li>\n<li>= 0.02041 \u00d7 18 = <strong>36.73% annualized cost<\/strong><\/li>\n<\/ul>\n<p><strong>Use Cases:<\/strong><\/p>\n<ul>\n<li>Accounts payable decision-making<\/li>\n<li>Cash flow and interest rate comparisons<\/li>\n<li>Financial performance improvement<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Discount Lost calculator estimates the financial cost of not taking advantage of early payment discounts. It\u2019s an essential tool for businesses to evaluate the true cost of delayed payments and make smarter cash flow decisions.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[26],"class_list":["post-105","post","type-post","status-publish","format-standard","hentry","category-finance","tag-inventory"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=105"}],"version-history":[{"count":1,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/105\/revisions"}],"predecessor-version":[{"id":64126,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/105\/revisions\/64126"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}