How to calculate Credit Cost? | Trade Credit Discount with examples, formula and calculator
Formula of Credit Cost calculation
Cost of Trade Credit = [1+ (Discount % / (1 – Discount %))] [365 / (Payment Days – Discount Days)] – 1
Cost of Trade Credit = [1+ (Discount % / (1 – Discount %))] [365 / (Payment Days – Discount Days)] – 1