Net 30 Payment Terms Explained (With Examples)
Net 30 means payment is due 30 days after the invoice date. Here's how to calculate due dates and avoid late payments.
Payment terms tell you when an invoice is due. "Net 30" appears on countless vendor invoices — but teams still miscalculate due dates, miss early-payment discounts, and pay late fees because terms were misread. This guide explains Net 30 and common variations.
What Net 30 means
Net 30 means payment is due 30 calendar days after the invoice date. If a vendor issues an invoice on June 1 with Net 30 terms, the due date is July 1. The word "Net" refers to the full invoice amount — no discount unless terms specify one.
Common payment terms
- Net 7 / Net 15 — due in 7 or 15 days (common for small suppliers)
- Net 30 — standard B2B terms; due in 30 days
- Net 45 / Net 60 / Net 90 — extended terms for larger buyers
- Due on receipt — payment due immediately upon invoice
- End of month (EOM) — due on the last day of the invoice month
- 2/10 Net 30 — 2% discount if paid within 10 days, otherwise Net 30
How to calculate invoice due dates
Add the net days to the invoice date. For Net 60 on an invoice dated January 15, the due date is March 16 (30 + 31 days). Use our free invoice due date calculator for Net 7 through Net 90, due on receipt, end of month, and custom terms.
Quick examples
- Invoice date: April 10, Net 30 → Due date: May 10
- Invoice date: April 10, Net 60 → Due date: June 9
- Invoice date: April 10, Due on receipt → Due date: April 10
Why payment terms matter for cash flow
AP teams use due dates to schedule payments, capture early-payment discounts, and avoid late fees. Missing a 2/10 Net 30 discount on a $50,000 invoice costs $1,000. Paying Net 60 invoices early unnecessarily ties up working capital. See our AP automation checklist for building a complete payment workflow.
Extracting due dates from invoice PDFs
At scale, manually reading payment terms from every PDF does not work. Invoice parsers extract invoice date, due date, and payment terms automatically with confidence scores. Low-confidence fields route to review before your payment run.
Creating invoices with clear terms
If you send invoices to customers, state payment terms explicitly. Our free invoice generator includes due date and notes fields so clients know exactly when payment is expected.
Frequently asked questions
What does Net 30 mean on an invoice?+
Net 30 means the buyer must pay the invoice within 30 calendar days of the invoice date. An invoice dated March 1 with Net 30 terms is due March 31.
Is Net 30 the same as 30 days from receipt?+
Not always. Net 30 typically counts from the invoice date, not the delivery or receipt date. Check the specific terms on each vendor agreement.
What is 2/10 Net 30?+
2/10 Net 30 offers a 2% discount if paid within 10 days; otherwise the full amount is due in 30 days. It incentivizes early payment to improve the supplier's cash flow.