Cash Discount vs. Installments: How Much to Give Away
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Every patient asks: "is there a discount for paying in cash?" The answer should not be a number off the top of your head. Installments cost a card terminal fee, Pix or debit costs far less, and the right discount is the one that covers that difference. The calculator finds that amount.
Your data stays in your browser. The starting values are a hypothetical example.
What does each field mean?
| Field | What to enter |
|---|---|
| List price in installments | The price you charge when the patient pays in installments. |
| Number of installments | How many installments the patient splits it into. |
| Total fee on installments | The card terminal fee for that installment plan, as a percentage. |
| Fee on cash payment | The fee on Pix (Brazil's instant payment system) or debit, usually much lower. |
How is it calculated?
- Net on installments = price × (1 minus installment fee).
- Equivalent cash price = net ÷ (1 minus cash fee).
- Equivalent discount = list price minus cash price.
Worked hypothetical example
Hypothetical example: R$ 3,000.00 in 6 installments, a 9.5% fee on installments and 1% on cash.
| Step | Calculation | Result |
|---|---|---|
| Net on installments | 3,000 × 0.905 | R$ 2,715.00 |
| Installment | 3,000 ÷ 6 | R$ 500.00 |
| Equivalent cash price | 2,715 ÷ 0.99 | R$ 2,742.42 |
| Equivalent discount | 3,000 minus 2,742.42 | R$ 257.58 |
| As a percentage | 257.58 ÷ 3,000 | 8.6% |
With an 8.6% cash discount, you end up in exactly the same financial position. A larger discount reduces your margin; a smaller one works in your favor.
How do I use the result?
If installments are the norm, consider passing the fee through to the price, as the installments and fees calculator shows. To see how far you can discount without a loss, use the maximum discount without a loss. And to check the final margin of the procedure, the minimum price per procedure.
Frequently asked questions
How much discount can I give for paying in cash?
The equivalent of the difference between the fees: the discount that leaves you receiving the same net amount you would get with installments.
Why do installments pay less?
Because the card terminal charges a higher fee on installments. The amount that lands in your account is lower than the list price.
Does the calculation account for the time it takes to receive payment?
No. It compares only the fees. If you advance receivables or wait months, the cost of time is additional.