📝 Quick answer: "Net 30" on an invoice means the customer must pay within 30 days of the invoice issue date. An invoice issued on January 15 is due by February 14.
How Net 30 works
"Net" simply means "the net amount due, after any discounts". The number is the days the customer has to pay. So:
- Net 7 = pay within 7 days
- Net 15 = pay within 15 days
- Net 30 = pay within 30 days
- Net 60 = pay within 60 days
How is Net 30 calculated?
By default, Net 30 starts on the invoice date. So an invoice with Net 30 terms issued on Jan 15 is due Feb 14.
Some businesses use "Net 30 EOM" (End of Month) — meaning 30 days after the end of the invoice month. An invoice issued anywhere in January would be due Mar 2 (30 days after Jan 31).
Always state which interpretation you mean. To avoid confusion, just write the actual due date on the invoice (e.g., "Due 14 February 2026") — it removes all ambiguity.
Net 30 vs Net 15: which should freelancers use?
For most freelancers and small businesses: use Net 15.
Net 30 became standard because large companies have payroll, vendor terms, and 30-day payment cycles. You're not a large company — your bills come due weekly. Waiting 30 days for cash is borrowing money to your client at zero interest.
💡 Pro tip: Net 15 gets you paid roughly 50% faster than Net 30 — and clients almost never push back when you set it as your default.
Common payment terms compared
| Term | Meaning | When to use |
|---|---|---|
| Due on receipt | Pay immediately | One-off small jobs, distrust |
| Net 7 | Due in 7 days | Small/urgent jobs, retainers |
| Net 15 | Due in 15 days | Best for freelancers |
| Net 30 | Due in 30 days | Standard B2B with mid-size clients |
| Net 45 | Due in 45 days | Government contracts, large enterprise |
| Net 60 | Due in 60 days | Fortune 500 vendor contracts |
| 2/10 Net 30 | 2% discount if paid in 10 days, otherwise full amount due in 30 | Encourage early payment |
| 1/15 Net 30 | 1% discount if paid in 15 days, full amount in 30 | Less aggressive early-pay discount |
| 50/50 | 50% upfront, 50% on completion | Project work, deposits |
What happens if Net 30 isn't paid?
If a Net 30 invoice goes unpaid past day 30, it's officially overdue. You have several options:
- Day 1 overdue: Friendly reminder email — most "late" payments are oversights
- Day 7-14: Firmer follow-up requesting a specific payment date
- Day 30+: Final notice mentioning late fees and possible legal action
- Day 45+: Apply statutory late payment interest (in UK: 8% above BoE base + £40-£100 fixed compensation under the Late Payment Act)
- Day 90+: Small claims court or debt collection agency
Use our late payment calculator to see how much you can claim once an invoice is overdue.
Should I offer 2/10 Net 30?
The "2/10 Net 30" structure offers a 2% discount if paid within 10 days. The math:
If a $1,000 invoice is paid in 10 days at a 2% discount, you receive $980. You give up $20 to be paid 20 days earlier.
Annualized, that's a ~36% discount rate — equivalent to borrowing money at 36% APR. Almost never worth it for the seller. Only consider this if your client base has a culture of paying late and you desperately need predictable cash flow.
Make professional invoices with payment terms
Set Net 7, 15, 30, or any custom term. Auto-reminders sent before and after the due date.
Frequently asked questions
Is Net 30 from invoice date or due date?
Net 30 is calculated from the invoice date — that is, 30 days after the invoice was issued. Some companies use "Net 30 EOM" meaning 30 days from end of month — always check.
Can I charge late fees on a Net 30 invoice?
Yes — if you stated late fees in the contract or on the invoice itself. Common is 1.5% per month. In the UK, statutory interest of 8% above BoE base rate applies automatically to overdue B2B invoices.
What does "Net 30 from receipt" mean?
It means the 30-day clock starts when the customer receives the invoice, not when it was issued. Less common — most use "Net 30 from invoice date".
Is Net 30 industry standard?
Net 30 is standard for established B2B companies, but it's outdated for freelancers. Net 15 has become the new standard for solo professionals and small businesses.