Cost of Discount Monthly

Miss Dazy

Once you work out the annual percentage cost of the discount, how do you work out the monthly cost of the discount?

Or is this a separate formulae if so could somone put it up, thanks

SandyHood

Find the amount of money that is due (before discount) and multiply that amount by the % discount on offer for early settlement

Eg you owe me £5,000, the discount I'm offering is 1% for payment one month quicker than normal, so the cost is 1% of £5,000 = £50