AP Timing Calculator
Cash flow impact of paying suppliers early or late.
Paying early may earn a discount (e.g. 2/10 net 30 = 2% off if paid in 10 days). Paying late preserves cash but can strain supplier relationships. This calculator models the cash flow impact of paying on time vs early (with discount) vs stretching payment terms.
Inputs
Results
Pay on time: $10,000
Pay early (with discount): $9,800
Annual savings (if monthly): $2,400
Insights
Formula
Early pay = Amount * (1 - discount%) Savings = Amount - Early pay
Input Definitions
What does each input mean?
- Invoice amount
- Total invoice amount due. Full payment if no early discount.
- Early pay discount %
- Discount offered for early payment. E.g. 2/10 net 30 means 2% off if paid in 10 days.
- Days early
- Days before due date when paying to qualify for discount. Used for planning.
Related Calculators
Using Payment Timing to Manage Cash Flow
When you pay your bills matters almost as much as how much you pay. Stretching accounts payable slightly (while maintaining vendor relationships) and collecting receivables as quickly as possible is one of the most powerful cash flow management tools available — and it doesn’t require cutting costs or raising revenue. This calculator helps you model the cash flow impact of different AP timing strategies.
Use it when you’re looking for ways to improve cash flow without new financing, when you want to understand the cash conversion implications of your current payment terms, or when you’re negotiating payment terms with suppliers or customers and want to quantify the value of different structures. A week’s difference in average payment timing can be worth tens of thousands in liquidity for a high-revenue business.