Glossary
What does net 30 mean?
Net 30 means payment is due 30 days after the invoice date. Learn how net 30 works, how to count the due date and when to use shorter terms.
Updated · By PayToMe Editorial
Net 30 is a payment term meaning the full invoice amount is due 30 days after the invoice date. “Net” refers to the amount owed after any discounts, and “30” is the number of calendar days the client has to pay.
How it works
The clock normally starts on the invoice date, not the day the client opens the email or the day the work finishes. So the date you put on the invoice matters. Send it late and your due date slides later with it.
To count the due date, add 30 calendar days to the invoice date, including weekends. If the due date falls on a weekend, many clients pay the next business day, but the invoice is still technically due on the stated date. You can skip the counting with the due date calculator.
Net 30 is a credit arrangement. You deliver first and get paid later, which is why it affects your cash flow. Larger companies often have a standard payment run, so they may expect net 30 or even net 60. Smaller clients and one-off jobs usually do better with shorter terms such as due on receipt.
A common variant is 2/10 net 30. It offers a discount for paying early, covered in early payment discounts.
Example
You invoice a client $4,800 on March 10 with net 30 terms.
| Item | Value |
|---|---|
| Invoice date | March 10 |
| Due date (30 days later) | April 9 |
| Amount due | $4,800.00 |
| If terms were 2/10 net 30: pay by March 20 | $4,704.00 |
The discount is 2% of $4,800, which is $96. If the client pays on April 9 instead, you receive the full $4,800, but about three weeks later. If you charge late fees, state them on the invoice and use the late fee calculator to check the amount.
Related terms
- Net 60: payment due 60 days after the invoice date.
- Due on receipt: payment expected immediately.
- Early payment discount: a reward for paying before the due date.