Cash discount calculator
Calculate the discount amount and amount payable in seconds – free and without sign-up.
Calculate cash discount
Discount amount
20.00 €
Amount payable
980.00 €
How the cash discount calculation works
A cash discount is an incentive for fast payment: those who pay early may deduct a percentage of the invoice amount. The formula is: discount amount = invoice amount × discount rate ÷ 100. You get the amount payable by subtracting the discount from the invoice amount.
Example: for a €1,000 invoice with a 2% discount you save €20 and transfer only €980. Note that a cash discount also proportionally reduces the stated VAT – this must be considered when booking.
Tip: state the discount terms clearly on the invoice, e.g. "Payable 30 days net; 2% discount if paid within 14 days". This avoids disputes over deductions.
Frequently asked questions
What is a cash discount (Skonto)?
A cash discount is a price reduction granted by the seller if the customer pays within a short period. In Germany 2–3% for payment within 7–14 days is common.
How is the cash discount calculated?
Discount amount = invoice amount × discount rate ÷ 100. The amount payable is the invoice amount minus the discount. Example: €1,000 at 2% = €20 off, pay €980.
Is the discount calculated on the gross or net amount?
In practice the discount is usually taken from the gross invoice amount (incl. VAT). Note: a cash discount also reduces the VAT accordingly, which must be considered when booking.
Is it worth taking the cash discount?
Almost always. 2% for paying in 14 instead of 30 days corresponds to an annual return of over 30%. Taking the discount is therefore usually cheaper than a loan.
Does the cash discount have to be on the invoice?
It is voluntary but should be stated clearly in the payment terms, e.g. "Payable within 30 days net, 2% discount if paid within 14 days".
Create invoices with cash discount
With Clever Invoice you create invoices incl. discount terms in seconds – via chat, WhatsApp or web.