Business & Sales

What Does Net 30 Mean?

Net 30 is a payment term on an invoice meaning the full amount is due within 30 days of the invoice date. Similar terms include net 15 and net 60. A term like 2/10 net 30 offers a 2% discount if paid within 10 days, with the full amount otherwise due in 30 days.

Late Payment

Invoices may state late fees or interest for payments received after the due date, subject to applicable law.

Early Payment Discounts

With 2/10 net 30, paying a 10,000 invoice within 10 days costs 9,800 instead of 10,000. Expressed as an annualized rate, giving up that 2% discount to pay 20 days later is roughly equivalent to paying about 37% a year for the extra time.

🧮 Calculate It Yourself

Put Net 30 Payment Terms into practice with these free calculators — no sign-up, nothing stored.

⏳ Late Payment Interest Calculator See exactly how much late fee to charge an overdue invoice. Calculate → 📅 Date Calculator Find days between two dates, or add/subtract days from a date. Calculate →

🔗 Related Terms

Invoice Late Payment Interest Cash Flow

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.