Net 30 Payment Terms Explained

What net and n/30 mean
How to count the due date

Net 30 means the customer has 30 days to pay the full amount of an invoice, counted from the invoice date unless your terms say otherwise. It's written Net 30 or n/30. If the terms also offer a discount for paying early, they're written like 2/10, n/30: a 2% discount if the customer pays within 10 days, or the full amount within 30 days.

Billed publishes this page. The definitions and examples of credit terms are quoted from the open textbook OpenStax Principles of Accounting, Volume 1, opened on October 30, 2026.

What net and n/30 mean

In credit terms, the number after n/ is the number of days the customer has to pay the full amount. OpenStax explains one example this way: "The credit terms were n/15, which is net due in 15 days" (OpenStax 6.3). In the same way, n/30, or Net 30, means net due in 30 days.

How to count the due date

Count 30 calendar days from the invoice date. In OpenStax's example, a purchase on credit on August 1, with an invoice date of August 1 and 2/10, n/30 terms, gives the buyer "net thirty days, in this case August 31, to pay in full" (OpenStax 12.2).

If your terms count from a different date, such as the day the customer receives the goods or the end of the month, say so in writing. Whatever the rule, put the actual due date on the invoice so there's nothing to work out.

Net 30 with an early-payment discount (2/10, n/30)

OpenStax says "credit terms of 2/10, n/30 signal the payment terms and discount", and that 2/10, n/30 means the buyer "has ten days to pay its balance due to receive a 2% discount". After those ten days, the buyer pays the full amount by the end of the 30 days, with no discount.

For the types of discount and how to show one on an invoice, see the guide to invoice discounts.

Worked example (sample figures)

A sample designer, invented for this example, sends a $4,800.00 invoice dated Monday, June 15, 2026, on terms of 2/10, n/30.

Discount deadline: June 15 + 10 days = Thursday, June 25, 2026
Discount: 2% × $4,800.00 = $96.00
Amount if paid by June 25: $4,800.00 − $96.00 = $4,704.00
Net due date: June 15 + 30 days = Wednesday, July 15, 2026 (June has 30 days)
Amount if paid after June 25 and by July 15: $4,800.00

On plain Net 30 terms, with no discount, the same invoice is due in full, $4,800.00, by July 15, 2026.

Other terms you'll see

Due on receipt: payment is due when the customer gets the invoice.
Net 15: the full amount is due within 15 days, as in OpenStax's n/15 example.
Net 60: the full amount is due within 60 days.

What to put on a Net 30 invoice

the invoice date;
the terms, such as Net 30 or 2/10, n/30;
the due date, written out, and the discount deadline if you offer a discount;
the amount due, and the discounted amount if one applies;
how the customer can pay.

If you plan to charge late fees, check local rules first.

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." Its invoice software page says: "Set a due date on each invoice so your client knows when to pay. Invoice reports show which invoices are paid, partially paid or past due, and you can see who owes you money and send them a payment reminder."

When this guide isn't for you

If you sell to government agencies or across borders, check local rules, and ask your accountant or a lawyer about the terms you can use.

Frequently Asked Questions

What does Net 30 mean on an invoice?

The customer has 30 days to pay the full amount, counted from the invoice date unless the terms say otherwise. OpenStax describes n/15 as net due in 15 days, and n/30 works the same way.

How do I work out a Net 30 due date?

Add 30 calendar days to the invoice date. In this page's sample, an invoice dated June 15, 2026 is due on July 15, 2026. Write the due date on the invoice.

What does 2/10, n/30 mean?

The customer can take a 2% discount by paying within 10 days of the invoice date. Otherwise, the full amount is due within 30 days. In this page's sample, a $4,800.00 invoice paid by June 25 costs $4,704.00.

Can Net 30 start from a date other than the invoice date?

Yes, if your terms say so, for example from the day the customer receives the goods. State the starting point in writing and put the actual due date on the invoice.

Can I charge a late fee on a Net 30 invoice?

Check local rules before you add one.

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What Is Net 30? Payment Terms Explained for Invoicing