Net 30 is a payment term that means the full ("net") amount of an invoice is due 30 days after the invoice date. An invoice dated October 1 on net 30 terms is due October 31. Other common terms follow the same pattern: net 15, net 45, net 60. "2/10 net 30" adds an early-payment discount. The customer can take 2% off if they pay within 10 days, otherwise the full amount is due in 30. On a $10,000 invoice, that is $9,800 by day 10 or $10,000 by day 30.
What does net 30 mean?
"Net" is the full amount of the invoice after any discounts already shown on it. "30" is the number of days the customer has to pay it. So net 30 means pay the invoice total within 30 days.
When does the 30 days start?
Usually on the invoice date. Some terms count from another date instead, and the invoice should say which.
| Term | Due |
|---|---|
| Net 30 | 30 days after the invoice date |
| Net 30 EOM | 30 days after the end of the month the invoice is dated in |
| Net 30 from receipt | 30 days after the customer receives the invoice or the goods |
| Due on receipt | When the customer gets the invoice |
Example: an invoice dated October 1 on net 30 is due October 31. The same invoice on net 30 EOM is due 30 days after October 31, which is November 30.
Count calendar days, not business days, unless your terms say otherwise. Print the actual due date on the invoice so nobody has to count.
What does 2/10 net 30 mean?
It is net 30 with an early-payment discount. The customer may take 2% off if they pay within 10 days. Otherwise the full amount is due within 30 days.
Worked example on a $10,000 invoice:
- 2% discount: $10,000 × 0.02 = $200
- Paid within 10 days: $10,000 − $200 = $9,800
- Paid on day 11 to day 30: $10,000
Is the early-payment discount worth it?
For the customer, usually yes, if they have the cash. The arithmetic shows why. By paying 20 days early (day 10 instead of day 30), they save $200 on $9,800.
- Return for 20 days: $200 ÷ $9,800 = 2.04%
- Number of 20-day periods in a year: 365 ÷ 20 = 18.25
- Simple yearly rate: 2.04% × 18.25 = about 37%
For the seller, that is the same number seen from the other side. A 2/10 net 30 discount is an expensive way to get paid 20 days sooner. Offer it when cash now is worth that much to you.
What other net terms are common?
Net 15, net 45, net 60 and net 90 work the same way with different day counts. Longer terms are common with large buyers. The longer the term, the longer your cash is tied up in accounts receivable, which shows up in days sales outstanding.
Do net terms apply to consumers?
Net terms are a business-to-business habit. Consumers usually pay at the time of sale, or over time on a payment plan with a set payment schedule and specific due dates.
Plain-language definition. The dates and amounts are worked examples, not rules.
Every figure on this page was checked against these sources on Oct 6, 2026. General information, not legal or tax advice.