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A client asks for twelve per cent off in return for a five-year commitment. Sixty thousand a year becomes fifty-two thousand eight hundred, held for the term. The discount is twelve per cent. The cost of the deal is 18.76%. The difference is every price rise you will not make for the rest of the […]
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A client asks for twelve per cent off in return for a five-year commitment. Sixty thousand a year becomes fifty-two thousand eight hundred, held for the term.
The discount is twelve per cent. The cost of the deal is 18.76%.
The difference is every price rise you will not make for the rest of the term. Against repricing at four per cent a year, the five-year fixed price gives up sixty thousand nine hundred and seventy-nine dollars — and that arrives not as a discount you agreed to but as a margin that thins every year while the work stays exactly the same.
Year one earns 20.45%. Year five earns 6.94%. Nothing went wrong in between; the price was held and the cost underneath it was not.
The page also gives the year the cost overtakes the price, whether or not it falls inside the term. On these figures that is year seven. The term is five, so this contract stays profitable — but the number is on the page because a seven-year version of the same offer is not a longer version of this decision, it is a different one, and the table marks every year that would be delivered at a loss.
Then the number that is the whole negotiation: the annual uplift clause that would make the discounted deal worth the same as repricing each year. Here it is 10.41%. Knowing that figure changes what you ask for, and knowing it is usually higher than any client will sign is itself the answer.
There is no inflation forecast here. Both rates are inputs because nobody knows them, and the answer turns hardest on the cost one. Run it twice with two different guesses and compare the two on the comparison screen rather than trusting a single number.
It does not tell you whether to sign or what the right term is. It works out what the paperwork is worth in each year of it, which is the part that gets skipped when a discount is discussed as a single percentage.
Save as many versions as you like and put any two side by side, figure against figure, with the better one on each line marked and the difference in its own column. That screen is the one that decides things, and it is the part a free calculator cannot do at all. Run it twice with two different guesses at cost inflation and compare the two.
One HTML file. No account, no subscription, no internet needed. Opens on Windows, Mac and Android; the readme explains the extra step on iPhone and iPad, where Apple blocks JavaScript in downloaded files and every tool of this kind is affected.
Everything lives in your browser on your device. Nothing is uploaded, which is why it works offline and why nobody else can see your figures — and it also means clearing your browsing data deletes it. The tool does not pretend otherwise: the header shows how long since your last export at all times, turns amber after three days and red after seven, and export is one click that produces a plain file you keep.
Please verify the product description for exact OS compatibility, but the vast majority of our web-based tools and digital utilities operate beautifully on any operating system.
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Post-purchase, you will receive an instant download link securely delivered to your email, alongside your activation license key if applicable.
We include rigorous, detailed documentation, and our responsive support team is on standby to assist you with any installation or configuration hurdles.
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