# Early-payment discount

> Early-payment discount — A reduction offered for paying before the net due date — 2/10 net 30 is 2% off if paid in 10 days, an annualized return of about 37%.

Source: https://lopifi.com/glossary/early-payment-discount
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is early-payment discount?** In accounting, early-payment discount means a reduction offered for paying before the net due date — 2/10 net 30 is 2% off if paid in 10 days, an annualized return of about 37%.

## Words this system refuses for it

- rebate
- prompt-pay credit

- **Category:** Payables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)