Net 30 payment terms, explained
Net 30 means the full amount of an invoice is due 30 days after the invoice date. An invoice dated October 19, 2026 on net 30 is due on Wednesday, November 18, 2026. Below: a due-date calculator, what 2/10 net 30 means and costs, and how to choose your terms.
Last reviewed October 19, 2026. General information, not legal or financial advice.
Net 30 due date calculator
Payment is due onWednesday, November 18, 2026
What net 30 means
"Net" is the full amount of the invoice, with no discount taken. "30" is the number of calendar days the client has to pay it, weekends and holidays included. The days usually count from the invoice date, so an invoice dated October 19, 2026 on net 30 is due on November 18, 2026.
Some contracts count from a different day: from the end of the month (net 30 EOM, which makes the same invoice due Monday, November 30, 2026), or from when goods arrive. Whatever the contract or the invoice says wins, so write the due date on the invoice as well as the terms.
The terms and the early-payment discount follow the standard usage described in AccountingTools' explanation of credit terms.
Common payment terms
| Term | What it usually means |
|---|---|
| Due on receipt | Payable when the client gets the invoice. |
| Net 7, net 15 | Full amount due 7 or 15 days after the invoice date. Common for freelancers and small jobs. |
| Net 30 | Full amount due 30 days after the invoice date. A common default between businesses. |
| Net 45, net 60, net 90 | Full amount due 45, 60 or 90 days after the invoice date. Often asked for by larger clients. |
| Net 30 EOM | Due 30 days after the end of the month in which the invoice is dated. |
| 2/10 net 30 | 2% off if paid within 10 days; otherwise the full amount is due in 30 days. |
| 1/10 net 30 | 1% off if paid within 10 days; otherwise the full amount is due in 30 days. |
2/10 net 30 and early-payment discounts
2/10 net 30 offers the client 2% off if they pay within 10 days; otherwise the full amount is due in 30. Skipping the discount means paying 2% more to keep the money for 20 more days, and that is expensive as a yearly rate. The usual formula is discount % / (100 - discount %) x days in a year / (net days - discount days).
| Paid within the discount period | $5,880.00 |
|---|---|
| Saving for the client | $120.00 |
| Yearly cost of skipping the discount (365-day year) | 37.2% |
| Same, on a 360-day year | 36.7% |
On a $6,000 invoice, 2/10 net 30 means $5,880 if paid within 10 days, or $6,000 by day 30. The 2% works out at about 37.2% a year on a 365-day year (36.7% on 360 days; AccountingTools shows the 360-day version). Offering it costs you the discount on every client who takes it, so only offer it if getting paid sooner is worth that much to you.
Net 15, net 30 or net 60?
- Shorter terms (due on receipt, net 7, net 15) get you paid sooner and suit freelancers, small jobs and new clients.
- Net 30 is what many businesses expect and fits monthly payment runs, so it causes the fewest questions.
- Net 45 to net 90 are usually asked for by larger clients. They delay your cash; consider a deposit or staged invoices on long work.
- Whatever you pick, agree it before the work starts, put it in the contract, and print it and the due date on every invoice.
If a client pays late
Send a short, polite reminder the day after the due date and follow up on a schedule; the unpaid-invoice guide has emails you can copy. Late fees or interest apply only if your contract allows them and the law where you work permits them, so check both before you add one.
Questions
How do net 30 terms work?
You send the invoice, and the client has 30 calendar days from the invoice date to pay the full amount. If the invoice is dated October 19, 2026, it is due November 18, 2026. The calculator above works out any date.
What does $6,000 net 30 mean?
That $6,000 is due in full within 30 days of the invoice date, with no discount. With 2/10 net 30 the client could instead pay $5,880 within 10 days.
What does net 15 mean?
The full amount is due 15 calendar days after the invoice date. Net 60 means 60 days, net 45 means 45 days, and so on: the number is always the days the client has.
Is net 60 better than net 30?
For the client, yes, because they keep their money longer. For you, no: you wait twice as long. Agree net 60 only if the client insists and the work is worth the wait, and consider a deposit.
What are net 40 payment terms?
The same idea with 40 days: the full amount is due 40 calendar days after the invoice date. Any number works as long as both sides agree it.
Do you put net 30 on an invoice?
Yes. Write the terms ("Net 30") and the actual due date, so nobody has to count. Agree the terms in the contract too.
What does 2/10 net 30 mean? And 1/10 net 30?
2/10 net 30: 2% off if the client pays within 10 days, otherwise the full amount in 30. 1/10 net 30 is the same with 1% off. Skipping a 2% discount for 20 extra days costs about 37% a year; a 1% discount, about 18%.
Why do companies pay net 30?
It gives them time to check the work and the invoice, and to pay on a regular payment run, and it keeps cash in their business a little longer. It is a convention you can negotiate, not a rule.
What happens if a company doesn't pay within net 30?
The invoice is overdue. Remind them promptly and follow up on a schedule. Late fees or interest apply only if your contract allows them and the law where you work permits them.
Should I do net 15 or net 30?
Net 15 gets you paid sooner and suits small jobs and new clients. Net 30 is what many businesses expect. If you are not sure, offer net 15 and accept net 30 when a client asks.
Related
Put the due date on every invoice.
In Honest Day you set default payment terms (0, 7, 14, 15, 30, 45 or 60 days), each invoice shows its due date, and overdue reminders go out 3, 10 and 21 days late. Automatic reminders are Premium, and included free while a workspace has one person in it; you can send one by hand on any plan.