Calculate due dates and early payment discounts for Net 30 terms and other payment periods
Net 30 Calculator — Easily calculate payment due dates and early payment discounts:
Streamline your accounts receivable process by setting clear payment expectations with customers.
The date when the invoice is issued
Net terms define when full payment is due after invoice date
Total amount of the invoice (if you want to calculate interest)
Annual interest rate for late payments (if specified in your terms)
The date when the invoice is issued
Early payment discount terms offered to customers
Days to pay for discount
Total days to pay
Total amount of the invoice (required to calculate discount amounts)
Late Payment Warning: If payment is made after the due date, late payment interest may apply according to your terms. The daily late fee would be $0.00 based on the specified interest rate.
What Net 30 means: Net 30 is a payment term that requires the customer to pay the full invoice amount within 30 days of the invoice date. It's one of the most common payment terms used in business transactions.
If discount terms like "2/10 Net 30" are used, the customer receives a 2% discount if they pay within 10 days, otherwise the full amount is due within 30 days.
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This calculator provides an estimate based on the information provided. For expert guidance on accounts receivable management, consider Paidnice's automated collection solutions.
Net 30 is a payment term that gives customers 30 days from the invoice date to pay the full invoice amount. It's one of the most common payment terms used in business transactions and is widely recognized across industries.
When you see "Net 30" on an invoice, it indicates:
While Net 30 is common, businesses may use different net payment terms based on their cash flow needs and industry standards:
Very short payment terms, often used for small transactions, perishable goods, or when working with new customers with no established credit history.
Shorter payment terms that balance cash flow needs while still offering customers a reasonable window to process payment.
The most common payment term, offering a balance between vendor cash flow and customer payment processing time.
Extended terms that might be offered to long-term customers or for larger orders to provide more payment flexibility.
Longer payment terms sometimes used in industries with extended cash conversion cycles or for established customers.
Very extended terms, usually only offered to the most creditworthy customers or in industries with particularly long cash cycles.
To encourage faster payment, businesses may offer early payment discounts with their net terms. These are typically written in the format "discount percentage/discount period Net payment period":
2/10 Net 30 means the customer receives a 2% discount if they pay within 10 days of the invoice date. Otherwise, the full amount is due within 30 days.
Other common discount terms include:
1/10 Net 30: 1% discount if paid within 10 days, otherwise full payment due in 30 days
3/10 Net 30: 3% discount if paid within 10 days, otherwise full payment due in 30 days
2/15 Net 30: 2% discount if paid within 15 days, otherwise full payment due in 30 days
To calculate when a Net 30 invoice is due:
For example, if an invoice is dated March 1, 2025, the Net 30 due date would be March 31, 2025.
Pro Tip: Due Date Calculation
Be clear about whether due dates are calculated using calendar days or business days. Most Net 30 terms use calendar days, but some industries or specific contracts might specify business days.
Unlike Net 30 which extends credit for 30 days, COD requires immediate payment when goods are delivered. COD improves cash flow but may limit customer acquisition and order size.
Prepayment requires customers to pay before goods/services are delivered, while Net 30 allows them to pay after. Prepayment eliminates credit risk but may reduce competitiveness.
Net 60 gives customers twice as long to pay as Net 30. It may help win business but significantly impacts cash flow and increases credit risk compared to Net 30.
Rather than a single payment after 30 days, installment terms split payments across multiple dates. This balances cash flow concerns for both parties but adds complexity.
"Net 30 EOM" (End of Month) means payment is due 30 days after the end of the month in which the invoice was issued. For example, if an invoice is dated March 15, 2025:
This gives customers a slightly longer payment period for invoices issued early in the month, but standardizes all due dates to simplify accounts receivable tracking.
To calculate a Net 30 due date:
For example, if an invoice is dated April 5, the Net 30 due date would be May 5.
If the due date falls on a weekend or holiday, many businesses consider the next business day as the effective due date, though this should be specified in your terms and conditions.
A typical Net 30 payment terms example:
This clearly communicates to the customer that they have 30 days from the invoice date to make payment, and specifies the consequences of late payment.
"2/10 Net 30" is a payment term that offers a discount for early payment:
Example for a $1,000 invoice:
Annual equivalent value:
A 2% discount for paying 20 days early is equivalent to an annual return of 36.5% (2% × 365 ÷ 20 = 36.5%)
This term incentivizes customers to pay quickly, improving your cash flow while still offering the flexibility of standard Net 30 terms.
"3% Net 30" is typically a shorthand for "3/10 Net 30" or similar terms, meaning:
Example for a $1,000 invoice with 3/10 Net 30 terms:
The 3% discount is more generous than the standard 2% often offered, which may reflect a stronger desire to improve cash flow or industry-specific practices where larger discounts are common.
"5% Net 30" indicates a generous early payment discount structure, typically meaning:
Example on a $1,000 invoice with 5/10 Net 30 terms:
A 5% discount is substantial and typically offered when:
"1% 10 Net 30" (or "1/10 Net 30") offers a modest early payment discount:
Example on a $1,000 invoice:
While 1% is a smaller discount than the more common 2%, it can still be effective for:
From the customer's perspective, a 1% discount for paying 20 days early equates to an 18.25% annualized return, which can still be attractive compared to other uses of their cash.
"Net 5" is a payment term that indicates payment is due within 5 calendar days of the invoice date. This is considered a very short payment term and is typically used for:
For example, if an invoice with Net 5 terms is dated April 10, the payment would be due by April 15.
Net 5 terms require customers to process payments quickly, which can be challenging for companies with lengthy accounts payable processes. Therefore, these terms are less common than Net 30 and are usually reserved for specific situations where rapid payment is essential.
While "Net 30" is a standard payment term, "Gross 30" is not a commonly used term in business invoicing. However, the distinction can be understood as follows:
Net 30:
Payment is due 30 days after the invoice date, with the "net" referring to the net amount after any discounts or adjustments.
Gross 30:
This term is rarely used but could refer to payment due 30 days after the invoice date based on the gross (total) amount before any discounts.
In practice, when discussing payment terms:
What might cause confusion is that in some accounting contexts, "gross" and "net" refer to amounts before and after deductions, respectively, rather than payment timing.
Whether Net 60 is "better" than Net 30 depends entirely on whether you're the buyer or the seller:
Net 60 is generally better as it provides:
Net 30 is typically better because it:
Business considerations for choosing between Net 30 and Net 60:
The optimal payment terms should balance customer satisfaction with your business's cash flow needs.
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