Net 30 Calculator | Invoice Payment Terms

Start with the invoice date, add 30 calendar days, and the result is the due date. For example, an invoice dated April 5 is due May 5. If the due date falls on a weekend or holiday, many businesses treat the next business day as the effective due date, so it helps to state which convention you use in your terms.

A typical Net 30 invoice reads: invoice date April 1, 2025, terms Net 30, due date May 1, 2025, with a note such as "Please pay within 30 days of the invoice date. Payments received after May 1, 2025 may be subject to a late fee of 1.5% per month." This makes the deadline and the cost of paying late clear to the customer.

"2/10 Net 30" offers a 2% discount if the customer pays within 10 days; otherwise the full amount is due within 30 days. On a $1,000 invoice that is $980 if paid by day 10, or $1,000 from day 11 to day 30. For the customer, taking the discount is worth a lot: skipping it is equivalent to borrowing at roughly 37% a year, so early payment is usually the better choice.

"3% Net 30" is usually shorthand for 3/10 Net 30: a 3% discount if paid within 10 days, otherwise the full amount is due in 30. On a $1,000 invoice that saves $30 ($970). A 3% discount is more generous than the common 2% and often signals a stronger need to pull cash in faster.

"5% Net 30" (typically 5/10 Net 30) gives a 5% discount for paying within the early window, otherwise the full amount is due in 30 days. On a $1,000 invoice that is $950 if paid early. A 5% discount is substantial and is usually offered when cash flow is critical, margins can absorb it, or financing receivables would cost more than 5%.

"1/10 Net 30" (also written "1% 10 Net 30") gives a 1% discount if paid within 10 days, otherwise the full amount is due in 30. On a $1,000 invoice that saves $10. Even a 1% discount is meaningful: for the customer it is worth about 18% a year, which beats leaving the cash idle.

Net 5 means payment is due within 5 calendar days of the invoice date. It is a very short term, used for perishable goods, small jobs, new customers, or when cash flow is tight. An invoice dated April 10 with Net 5 terms is due by April 15.

"Net 30" is standard: payment is due 30 days after the invoice date, with "net" referring to the amount due after any discounts. "Gross 30" is rarely used, but would imply payment in 30 days based on the gross (pre-discount) total. In practice, "net" refers to the payment window, while "gross" and "net" describe amounts before and after deductions.

It depends on which side you are on. For buyers, Net 60 is better because it frees up cash and gives more time to pay. For sellers, Net 30 is usually better because it brings cash in faster, reduces receivables exposure, and lowers bad-debt risk. The right choice balances industry norms, competition, customer relationships, order size, and your margins.

Net 30 vendor accounts can help build your business credit when the supplier reports payments to bureaus such as Dun & Bradstreet, Experian Business or Equifax Business. Paying on time builds a positive history (for example a D&B PAYDEX score). Net 30 generally does not affect your personal credit unless you personally guaranteed the account and it defaults. Not all suppliers report, so check first if you are using Net 30 accounts to build credit.

Net 30 is a sensible default for most B2B sellers: it is widely expected, can win business, and builds customer relationships. The trade-off is a 30-day gap between invoicing and getting paid. If cash flow is tight, shorter terms or an early payment discount can help, and consistent reminders keep payments on time.

Net 30 itself has no interest rate; it simply sets a 30-day deadline. Two rates are often linked to it: the late payment interest you can charge if an invoice is paid after the due date (set in your terms or by law), and the effective cost of an early payment discount. For example, skipping a 2/10 Net 30 discount works out to roughly 37% a year. Use the calculator above to work out both.

Add 30 calendar days to today's date. In the calculator above, set the invoice date to today and the due date appears instantly. In a spreadsheet, use =TODAY()+30.