On this page
Key takeaways
- Net 30 means the full invoice amount is due 30 days after the start date, normally the invoice date.
- It is the most common business payment term. Name the start event so no one argues about it.
- Net 30 from invoice date and net 30 from receipt of a correct invoice can be weeks apart.
- Use the calculator below to work out the real due date and what the wait costs.
Free PDF and Excel: Net 30 cash impact worksheet and clause wording. Get it below
What net 30 means
Net 30 is a payment term meaning the full invoice amount is due within 30 days of the start date, which is normally the invoice date unless the contract says otherwise.
The word net means the whole invoice, with no early payment discount applying. If there were a discount, the term would read like 2/10 net 30. The wider picture of terms is on payment terms. This page looks only at net 30.
A supplier invoices a retailer 12,000 on 18 March on net 30 terms. Counting from the invoice date, the due date is 17 April. The retailer's system counts from the date the invoice reached accounts payable, 25 March, and shows a due date of 24 April.
The supplier chases on 18 April. The retailer points to its system date. A one-line contract fix, "30 days from the invoice date", would have ended the argument.
Check the due date
Pick the invoice date and keep Net 30 selected. The count is in calendar days. Contracts that count business days are a different term.
Free PDF and Excel
Net 30 cash impact worksheet and clause wording
A worksheet that shows what net 30 does to your cash, plus clause wording that avoids start-date arguments.
- Cash impact worksheet
- Clause wording
- Weekend and holiday rule
- Excel due date and cost calculator
Points to settle in writing
- Start event: invoice date, date of receipt of goods or date a correct invoice is received.
- Calendar days or business days.
- What happens when day 30 falls on a weekend or a bank holiday.
- Whether the buyer may pay early and keep the full price.
- The late fee or interest, if any.
Who it suits
| Situation | Net 30 fits? |
|---|---|
| Established supplier and buyer, routine goods | Yes, it is the standard |
| New supplier with no track record | Sellers often ask for shorter terms or advance payment |
| Small supplier with tight cash | A shorter term helps them, and in some countries the law limits long terms for small suppliers |
| Buyer with a long approval cycle | Fix the cycle first, or negotiate net 45 |
What the wait is worth
On an invoice of 10,000 and a cost of funds of 8 percent a year, 30 days of credit is worth about 66 to the buyer. For a supplier that must finance the gap it costs the same, and for a thin-margin business that adds up. The Excel file for this page lets you try your own numbers.
For longer terms see net 45, net 60 and net 90. For shorter ones see net 15 and due on receipt. When invoices go unpaid, see past due invoice.
- Start event is written.
- Calendar or business days is stated.
- Weekend rule is agreed.
- Late fee clause is in the contract.
- The purchase order, contract and invoice all say the same thing.
Last checked: 19 October 2026. General commercial practice. Late payment rules differ by country.
Frequently asked questions
What does net 30 mean?
Payment of the full invoice amount is due 30 days after the start date, normally the invoice date.
Does net 30 mean 30 days or one month?
Thirty calendar days, unless the contract says business days or end of month.
Is net 30 the same as due in 30 days?
Yes, in ordinary use. The word net indicates no discount applies.
Can I pay a net 30 invoice early?
Yes, but you get no discount unless the terms offer one.
What is net 30 EOM?
Payment is due 30 days after the end of the month in which the invoice is dated.