Payment Terms Calculator for Procurement (Working Capital & WACC Explained)

Payment terms are often treated as a contractual detail.
In reality, they are a working capital decision.

This calculator is designed for procurement professionals who want to understand the real financial impact of payment terms, before agreeing them with suppliers or pushing them internally.

Instead of debating days, it translates payment terms into cash impact, cost of capital, and commercial trade-offs that can be explained clearly to Finance, suppliers, and the business.

What you’ll get

• A practical Excel-based Payment Terms Calculator
• Built-in logic that converts days into working capital and cash impact
• Support for evaluating early payment discounts vs standard terms
• A clear commercial recommendation to sense-check decisions
• A plain-English explanation of WACC, written for non-finance teams

Behind the scenes, the calculator uses a cash impact engine to apply cost-of-capital logic, without turning procurement into a finance exercise.

What this is useful for

• Preparing for supplier negotiations
• Responding to Finance-led pushes for longer terms
• Explaining payment term trade-offs without hand-waving
• Making defensible, commercially balanced decisions

What this tool is not

It does not tell you what terms to impose.
It does not replace negotiation or supplier context.
It does not account for strategic suppliers, SMEs, or risk on its own.

Procurement judgement still matters. This tool simply sharpens it.

Who this is for

• Procurement and commercial teams
• Category managers and sourcing leads
• Anyone involved in payment terms discussions who wants facts, not opinions

This is a practical tool, not a template and not a theory piece.
Built to be used, reused, and shared internally.