Invoice Payment Terms: Net 30, Net 60 Guide

How credit terms are written
The types of payment terms

Invoice payment terms say when a client has to pay an invoice, and whether anything changes if they pay early, pay part up front or pay late. The main types are due on receipt; net terms such as net 15, net 30 and net 60; early-payment discounts such as 2/10, n/30; deposits paid before the work; and payments tied to milestones or progress. This page surveys each type and links the pages that cover them in detail.

Billed publishes this page. The accounting definitions are quoted from the open textbook OpenStax Principles of Accounting, Volume 1, opened on October 30, 2026. Which terms you can use is set by your agreement with each client. If you plan to charge late fees, check local rules first.

How credit terms are written

In credit terms, n/ followed by a number gives the days allowed to pay the full amount. OpenStax explains one example: "The credit terms were n/15, which is net due in 15 days" (OpenStax 6.3).

A number before the slash is a discount for paying early. OpenStax describes 5/10 terms this way: "These credit terms include a discount opportunity (5/10), meaning, CBS has 10 days from the invoice date to pay on their account to receive a 5% discount on their purchase".

The types of payment terms

Due on receipt: the client pays when they receive the invoice.
Net 15, net 30 and net 60: the full amount is due within 15, 30 or 60 calendar days of the invoice date. For counting the days and what to write on the invoice, see what is net 30.
Early-payment discount: OpenStax says "credit terms of 2/10, n/30 signal the payment terms and discount" (OpenStax 12.2). For the types of discount and how to show one, see the guide to invoice discounts.
Deposit before the work: OpenStax defines unearned revenue as an "advance payment for a product or service that has yet to be provided by the company; the transaction is a liability until the product or service is provided". See the guide to deposit invoicing.
Milestone or progress payments: amounts billed as parts of a project are completed. See milestone invoicing and progress invoicing.
End of month: the due date counts from the end of a month rather than the invoice date. Because the wording varies, write the actual due date on the invoice.
Recurring billing: the same amount on a schedule. See what is a billing cycle.

Until a client pays, an invoice on credit terms is part of your accounts receivable, which OpenStax defines as "outstanding customer debt on a credit sale" (OpenStax, chapter 9 key terms).

What to put on the invoice

the invoice date;
the terms, such as Net 30 or 2/10, n/30;
the actual due date, and the discount deadline if there is one;
any deposit already paid, and the balance due;
how the client can pay.

If you plan to charge late fees, check local rules first. When an invoice passes its due date, see what is an overdue invoice and how to follow up on unpaid invoices.

Worked example (sample figures)

A sample consultant, invented for this example, issues a $3,000.00 invoice dated Tuesday, January 20, 2026. Here is the due date or amount under each type of term:

Due on receipt: due when the client receives it.
Net 15: January 20 + 15 days = Wednesday, February 4, 2026.
Net 30: January 20 + 30 days = Thursday, February 19, 2026.
Net 60: January 20 + 60 days = Saturday, March 21, 2026.
2/10, n/30: paid by January 20 + 10 days = Friday, January 30, 2026, the client pays $3,000.00 − (2% × $3,000.00) = $2,940.00; otherwise $3,000.00 by February 19, 2026.
50% deposit: 50% × $3,000.00 = $1,500.00 before the work starts, and the other $1,500.00 on the final invoice.

Where Billed fits

Billed's features page says: "Set due dates for payment on your invoices so your clients know when they have to pay you." It also says: "See partially paid invoices and send payment reminders to your customers." Billed's invoice software page says: "Give a client a discount on an invoice, or create coupons." For card payments on invoices, see Billed's accept payments page.

When this guide isn't for you

If you sell to government agencies, sell across borders, or want to add late fees or interest to your terms, check local rules and ask a lawyer about your contract terms. For more on late fees, see how to add late fees to invoices and late payment policies. If you need cash before clients pay, see what is invoice factoring.

Frequently Asked Questions

What are invoice payment terms?

The conditions on an invoice that say when the client has to pay, such as due on receipt or net 30, and whether there's a discount for paying early or a deposit before the work.

What does 2/10, n/30 mean?

The client can take a 2% discount by paying within 10 days; otherwise the full amount is due within 30 days. In this page's sample, a $3,000.00 invoice paid within 10 days costs $2,940.00.

What is the difference between due on receipt and net 30?

Due on receipt means the client pays when they receive the invoice. Net 30 means the full amount is due within 30 calendar days of the invoice date.

Can I add a late fee to my payment terms?

Check local rules first.

What should an invoice show about payment terms?

The invoice date, the terms, the actual due date, any discount deadline, any deposit already paid and the balance due, and how the client can pay.

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Invoice Payment Terms Explained: Net 30, Net 60, and More