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Vendor Discount Effective Rate of Interest Calculator

% <-- Enter Discount Percentage
<-- Enter Discount Period
% <-- Enter Full term in Days
  

How does the Vendor Discount Effective Rate of Interest Calculator work?

Calculates the effective rate of interest earned from a vendor discount for a prepayment of a balance within a certain amount of days for a percentage discount
This calculator has 3 inputs.

What 1 formula is used for the Vendor Discount Effective Rate of Interest Calculator?

  1. Discount %/(100 - Discount %) * 360/(Balance Due Days - Discount Period Days)

For more math formulas, check out our Formula Dossier

What 3 concepts are covered in the Vendor Discount Effective Rate of Interest Calculator?

discount
the amount by which the market price of a bond is lower than its principal amount due at maturity
interest rate
the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor
vendor discount
Discount percentage paid within m days, else the full price is due in n days

Example calculations for the Vendor Discount Effective Rate of Interest Calculator

  1. 2/10 net 30



Vendor Discount Effective Rate of Interest Calculator Video