Payment terms & due dates
2/10 net 30 is borrowing at 37% a year. This tells you whether to take the discount.
- Runs
- In this tab
- Data sent
- None
- Rounding
- Once, at the end
- Also in
- The Chrome extension
Payment terms & due dates, worked
Showing a worked example — type over it
Result
How the payment terms & due dates works.
Fiscal period resolver (any FY start), payment-terms calculator (Net 30, 2/10 net 30 and 2/10, n/30, EOM and Net 10 EOM, 15 MFI) with the discount decision, day-count conventions (actual/365, actual/360, 30/360, and ISDA actual/actual — the period split at each 1 January, leap-year days over 366 and the rest over 365), business-day arithmetic, and the day count that makes a proration exact.
Quoted from the toolbelt spec, the document this tool was built against.
Where these numbers come from.
Negatives are parenthesised because that is what a statement does. The rest is four promises.
Minor units, never floats
Amounts are integers in the currency's smallest unit, end to end. A float never touches a cent.
Rounded once
Rounded once, at the end — never per operand, which is how a split stops summing to the whole.
Unit tested
The arithmetic lives in one unit-tested module, shared without reimplementation with the extension.
No network
There is no request to make. What you type stays in this tab and is gone when you close it.
More in dates & terms
Read it in context
- Founder guide · 7 minBalance sheet explained for startupsAssets equal liabilities plus equity. What each startup line means, from deferred revenue to the SAFE and the accumulated deficit, and why it must balance.
- Founder guide · 5 minCash flow statement explained: why profit isn’t cashHow the cash flow statement starts at net income, adds back non-cash costs and working capital, splits three activities and ties to the balance sheet.
- Founder guide · 6 minGeneral ledger and double-entry bookkeeping, explainedHow double entry works: journal entries, debits and credits, normal balances, running balances, the trial balance, and why posted entries are reversed.
The same number, elsewhere.
A calculator answers the question once. These carry the answer into a product, name what it computed, and argue the method.
- ComponentAgingTableAR/AP buckets, 0-30-60-90+.
- ComponentDunningTimelinePer customer, not per invoice.
- ComponentInvoiceFormWith the revenue-recognition preview per line.
- TermAgingGrouping open receivables or payables into buckets by days past due date — current, 1–30, 31–60, 61–90, 90+
- TermDSODSO is a liquidity and working-capital metric, calculated as (Ending AR ÷ Credit sales for the period) × Days in the period.
- TermDunningThe sequence of collection communications
- TermPromise to payA customer commitment to a date and amount
- TermAccounts receivableWhat customers owe us for invoices already issued
- TermAccounts payableWhat we owe vendors for bills already received
- DocOrder to cash (AR)The complete receivables stack: quote → order → fulfilment → invoice → collection → cash application → revenue.
- EntryJournal entry for an inventory purchaseWhen inventory is bought on credit under a perpetual system, debit Inventory and credit Accounts payable. If an early-payment discount is taken, debit Accounts payable for the full bill, credit Cash for what is paid and credit Inventory for the discount.
- DocCurrency decimal placesHow many decimals each ISO 4217 code is stored at — JPY 0, USD 2, KWD 3.