DIRECTIONS FOR USING REBATE
SPREADSHEET
The spreadsheet automatically calculates the net savings to the government and
determines whether an agency should pay early or on the Prompt Payment due date.
In order to use this spreadsheeet, please follow the directions below:
1. Enter the amount of money owed to credit card provider in cell C3.
2. Enter the maximum discount offered by the credit card provider in cell E3.
3. Enter the basis points offererd by the credit card provider in cell F3.
4. After this data is entered, compare the net savings if payment was made as early as
possible (cell G6) with the amount of money the government would save if payment was
made as late as possible (cell G36). If the net savings in cell G6 exceeds the net savings in
cell G36, it may be in the best interest of the government to accept the rebate and pay as
early as possible. However, if the net savings in cell G6 is less than the net savings in cell
G36, it may be in the best interest of the government to pay as close to the Prompt Payment
due date as possible.
An example for using this spreadsheet is also available.
EXAMPLE FOR USING REBATE
SPREADSHEET
Maximum discount offered by card provider: 1.070%
Basis points offered by credit card provider: .016%, or 1.6
Current Value of Funds (CVF) Rate in Effect: 6%
Amount of money owed to the vendor: $5,000
Net savings if payment is made as early as possible: $28.50 (Cell G6)
Net savings if payment is made on Prompt Payment due date: $29.50 (Cell G36)
* In this example, it would be in best interest of the government if payment was made as close to
the payment due date as possible.
Current Enter Enter
Value of Amount of Maximum Enter Basis
Funds Debt Discount Points
6.00% $5,000.00 1.060% 0.0150%
IR Cost of $ Cost of
Days to Borrowing Borrowing Net
Maturity Perc Disc $ Disc Balance Balance Balance Savings
30 1.060% $53.00 $4,947.00 0.50% $25.00 $28.00
29 1.045% $52.25 $4,947.75 0.48% $24.17 $28.08
28 1.030% $51.50 $4,948.50 0.47% $23.33 $28.17
27 1.015% $50.75 $4,949.25 0.45% $22.50 $28.25
26 1.000% $50.00 $4,950.00 0.43% $21.67 $28.33
25 0.985% $49.25 $4,950.75 0.42% $20.83 $28.42
24 0.970% $48.50 $4,951.50 0.40% $20.00 $28.50
23 0.955% $47.75 $4,952.25 0.38% $19.17 $28.58
22 0.940% $47.00 $4,953.00 0.37% $18.33 $28.67
21 0.925% $46.25 $4,953.75 0.35% $17.50 $28.75
20 0.910% $45.50 $4,954.50 0.33% $16.67 $28.83
19 0.895% $44.75 $4,955.25 0.32% $15.83 $28.92
18 0.880% $44.00 $4,956.00 0.30% $15.00 $29.00
17 0.865% $43.25 $4,956.75 0.28% $14.17 $29.08
16 0.850% $42.50 $4,957.50 0.27% $13.33 $29.17
15 0.835% $41.75 $4,958.25 0.25% $12.50 $29.25
14 0.820% $41.00 $4,959.00 0.23% $11.67 $29.33
13 0.805% $40.25 $4,959.75 0.22% $10.83 $29.42
12 0.790% $39.50 $4,960.50 0.20% $10.00 $29.50
11 0.775% $38.75 $4,961.25 0.18% $9.17 $29.58
10 0.760% $38.00 $4,962.00 0.17% $8.33 $29.67
9 0.745% $37.25 $4,962.75 0.15% $7.50 $29.75
8 0.730% $36.50 $4,963.50 0.13% $6.67 $29.83
7 0.715% $35.75 $4,964.25 0.12% $5.83 $29.92
6 0.700% $35.00 $4,965.00 0.10% $5.00 $30.00
5 0.685% $34.25 $4,965.75 0.08% $4.17 $30.08
4 0.670% $33.50 $4,966.50 0.07% $3.33 $30.17
3 0.655% $32.75 $4,967.25 0.05% $2.50 $30.25
2 0.640% $32.00 $4,968.00 0.03% $1.67 $30.33
1 0.625% $31.25 $4,968.75 0.02% $0.83 $30.42
0 0.610% $30.50 $4,969.50 0.00% $0.00 $30.50