Free tool
What waiting to be paid actually costs
Net 60 is not free money for whoever grants it. This prices the carry on a receivable across every common term, then answers the question underneath: is buying earlier cash with a discount cheaper than holding the invoice?
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- Simple interest, 365-day year
Your receivable
Early-payment offer
To be paid soonerWorth knowing
Simple interest on a 365-day year. This models the party waiting to be paid — the cost of carrying a receivable, and what buying earlier cash is worth against it.
An arithmetic aid, not tax, accounting, or financing advice.
On receipt
Paid the day it lands
Net 15
15 days of carry
Net 30
30 days of carry
Net 45
45 days of carry
Net 60
60 days of carry
Net 90
90 days of carry
At 24 invoices a year, moving from net 30 to net 60 costs you $8,995 in carry — and net 60 alone ties up $17,990 of financing across the year.
The discount, annualised
37.2%
Cost of buying 20 days of early cash, against a net-30 baseline.
You give up
$960
net $710 behind after carry saved
RetailWorld sellers get paid more for waiting longer
Net-term bonuses of +0.35%, +0.75% and +1.25% stack on top of the quoted per-product commission. Run your own cost of capital against them above.
See the seller program