VegaPal

Free tool

Invoice discount calculator

Enter the amount and either a percentage or a fixed reduction, and see the discount value and the resulting total together. Useful before you commit to a number in a conversation, because a discount agreed verbally is very hard to walk back.

Discount type
%
Amount before discount1,000.00
Discount− 100.00
Amount after discount900.00
Effective discount rate10.00%

Percentage or fixed, and why it matters

A percentage discount scales with the job, which protects you on small work and costs you on large work. A fixed reduction does the opposite. On a 40,000 invoice, '10% off' and '2,000 off' are very different conversations, and clients usually ask for the one that favours them.

Where a discount is a goodwill gesture rather than a pricing decision, a fixed amount reads better on the document. It looks like a specific concession rather than a signal that your list price has slack in it.

Discount before or after tax

A discount normally reduces the taxable amount, which means tax is calculated on the discounted subtotal rather than the original. This calculator shows the discount and the net amount; where tax applies, work from that net figure.

Show the discount as its own line on the invoice rather than quietly lowering a unit price. The client sees the concession you made — which is the entire point of making it — and your records show what the work is actually worth.

Show the discount on the document

VegaPal applies a discount as its own line so the client can see the original amount, the reduction and the total due.

Frequently asked questions

Should a discount be applied before or after tax?

Usually before, so tax is calculated on the discounted subtotal. The exact treatment depends on your local tax rules, so confirm with your accountant if you are registered.

Percentage or fixed discount — which is better?

Percentages scale with the invoice and fixed amounts do not. For a one-off goodwill gesture a fixed amount reads as a specific concession rather than a permanent price cut.

Can VegaPal apply a discount automatically?

Yes. Discount is an optional field on each document, shown as its own line with the totals recalculated.

Other free tools

Read more