Net 30, Net 15, Net 60 and Net 90 Payment Terms, Explained
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Net 30 payment terms mean the full invoice amount is due 30 calendar days from the invoice date. Net 15 means 15 days, Net 60 means 60, and Net 90 means 90. The count includes weekends and holidays, and it starts on the invoice date unless your contract says otherwise. That is the definition Sage and Stripe both give.
Due date, quickly
Full calculatorPayment term wording you can copy
Print the exact date on the invoice as well as the term. Each clause below is written for the terms box.
Do Net terms include weekends and holidays?
Yes. Net terms almost always count calendar days, so a Net 30 invoice dated on a Monday is due on a Wednesday four weeks and two days later, holidays included. Resolve notes that business-day counting is the exception and has to be written into the contract. If your terms do say business days, the due date calculator has a business-day option that skips weekends only.
What each term means
| Term | Due | Where it is common |
|---|---|---|
| Due on receipt | The day the client receives the invoice | Small jobs, retail, first-time clients |
| Net 7 and Net 15 | 7 or 15 calendar days from the invoice date | Freelancers and small services protecting cash flow |
| Net 30 | 30 calendar days | The most common business-to-business term |
| Net 45 and Net 60 | 45 or 60 calendar days | Larger buyers with longer accounts payable cycles, wholesale |
| Net 90 | 90 calendar days | Large corporate or government buyers; rare for small suppliers |
| EOM | The last day of the invoice month | Buyers who batch payments monthly |
| Net 30 EOM | 30 days after the last day of the invoice month | The same buyers, giving suppliers who bill early a longer wait |
When the count starts
By convention, on the invoice date. Some contracts start the clock on the date the invoice was received, or on delivery or completion. Upflow lists those variants, and the difference can be a week or more when an invoice sits in an inbox. Say which one applies in your terms, and write "due by" with a date rather than only "Net 30."
Net 30 versus Net 45 versus Net 60
Every extra 15 days is 15 more days you fund the client's purchase from your own cash. Net 30 is the default most buyers accept without negotiation. Net 45 and Net 60 are often demanded by larger buyers; if you agree, either price the wait into the job, invoice earlier in the cycle, or offer an early payment discount so the buyer has a reason to pay sooner.
Early payment discounts (2/10 Net 30)
"2/10 Net 30" gives the buyer 2% off for paying within 10 days, with the full amount due at 30. J.P. Morgan describes it as the most common variation. Skipping the discount to pay 20 days later costs the buyer roughly 37% a year in interest terms, which is why the incentive works. "1/10 Net 30" is the same structure at 1%.
Why some freelancers avoid Net 30
Because a month is a long time to wait for money you have already earned, and late payers stretch it further. Common alternatives: Net 7 or Net 15, a deposit before the work starts, or "due on receipt" for small jobs. None of these is wrong; the point is to choose deliberately and write it down.
How to write payment terms on an invoice
Put the term and the exact due date together near the total, in the payment terms field described in the guide to what is an invoice: "Net 30. Payment is due by [date]." Add the accepted payment methods, and, if you charge one, the late fee wording next to it. The clause assembler writes the whole terms block from your choices. The invoice builder writes the due-by line from the term you pick, and the late fee calculator writes the fee clause.
This guide was written by Ready Utilities. The term definitions were checked against published guidance from Sage, Stripe, Resolve, Upflow, and J.P. Morgan, and the wording clauses match the arithmetic used in the site's due date calculator. It is reviewed when payment term conventions change; nothing you enter in the rail calculator is stored.
Frequently asked questions
Does Net 30 only include business days?
No. Net 30 counts 30 calendar days from the invoice date, weekends and public holidays included. Business-day terms exist but have to be written into the contract explicitly.
How do I calculate Net 30?
Add 30 calendar days to the invoice date. An invoice dated January 10 on Net 30 is due February 9. The calculator in the rail does the arithmetic and writes the exact date.
What are the downsides of Net 30 for the seller?
You are funding the client's purchase for a month out of your own working capital. Freelancers with tight cash flow often use Net 15, Net 7, or a deposit up front, and some avoid Net 30 for new clients until a payment history exists.
Is Net 30 or Net 45 better?
Net 30 gets you paid sooner; Net 45 may win work from larger buyers whose accounts payable cycle runs longer. If you extend to Net 45, price the extra two weeks of waiting into the job or offer an early payment discount instead.
What does 2/10 Net 30 mean?
The client can take 2% off if they pay within 10 days; otherwise the full amount is due in 30. Skipping the discount costs the buyer roughly 37% a year in interest terms, which is why it works as an incentive.
Can I charge a late fee after Net 30 passes?
Only if the late fee was in your terms before the work. Write the fee next to the payment term on the invoice, then use the late fee calculator to work out what is owed once the date passes.