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Bill Discount Calculator

Enter a bill's face value, annual discount rate, and discount days to instantly compute the discount charge and net proceeds. Supports specifying days by maturity date and shows the effective cost rate including collection fees.

Input

$
%

How to specify the discount period

days
$

Result

Net proceeds (amount received after discount)

$992,602.74

Discount charge

$7,397.26

Discount days

90 days

Effective cost rate

0.74 %

Calculation breakdown

Bill amount (face value)$1,000,000.00
Annual discount rate3 %
Discount days90 days
Discount charge− $7,397.26
Collection fee− $0.00
Net proceeds$992,602.74

How it works

  • The discount charge is calculated as bill amount × annual discount rate (%) × discount days ÷ 365. The net proceeds are the bill amount minus the discount charge and the collection fee.
  • Discount days can be entered directly as the number of days until maturity, or computed automatically by specifying the discount (start) date and the maturity date. The way days are counted (single-end, both-ends inclusive, etc.) may vary by financial institution.
  • The effective cost rate is calculated as (discount charge + collection fee) ÷ bill amount × 100, representing the proportion of cost incurred by discounting. Use it as a guide to financing cost.
  • Calculations assume a 365-day year. Results may differ slightly at institutions that use leap years or a different day-count basis (such as 360 days).
  • Actual discount rates, collection fees, and any minimum charges vary by financial institution, the credit standing of the counterparty, and the type of bill. The results of this tool are estimates, and rules differ by provider and year.
  • Displayed amounts are rounded for reference. Official discount charges and net proceeds may differ depending on the institution's calculation rules and rounding, so always confirm before signing a contract.