Healthcare Payment Terms Calculator

The most common payment terms in healthcare procurement are Net 30 and 2/10 Net 30. GPO (Group Purchasing Organization) contracts often negotiate specific terms with major distributors — for example, Cardinal Health, McKesson, and Medline may each offer different discount structures. Pharmaceutical distributors commonly use Net 30 or Net 45, while smaller medical supply vendors may offer 2/10 Net 30 to encourage faster payment.

2/10 Net 30 means the buyer can take a 2% discount if the invoice is paid within 10 days of the invoice date. Otherwise, the full invoice amount is due within 30 days. For a $10,000 medical supply invoice, that is a $200 savings for paying 20 days early. The annualized return on that discount is approximately 36.7%, which is almost always worth taking.

The annualized return formula is: (Discount % / (100 - Discount %)) x (365 / (Net Days - Discount Days)) x 100. For 2/10 Net 30, this is (2 / 98) x (365 / 20) x 100 = 37.2%. This tells you the equivalent annual interest rate you are earning by paying early — if your cost of capital is lower than this rate, you should always take the discount.

Healthcare AP departments miss early-pay discounts primarily because of vendor inquiry backlogs. When vendors email asking about invoice status and the AP team takes 3-5 days to respond, the dispute resolution cycle pushes past the discount window. Auxtri automates these vendor inquiry responses so hospitals can resolve issues in under 30 seconds and capture discounts that would otherwise expire.

No. Auxtri's payment terms calculator runs entirely in your browser. Your invoice data never leaves your device.