What Does Net 30, Net 60, or Net 90 Mean?
"Net 30" is invoicing shorthand that means the full invoice amount is due within 30 calendar days of the invoice date, with no discount applied. Net 60 and Net 90 follow the same logic, extending the payment window to 60 or 90 calendar days respectively. These terms are the backbone of B2B trade credit — instead of paying upfront, the buyer receives goods or services now and pays later, giving them working capital flexibility while the seller extends short-term credit.
The number after "Net" always refers to calendar days, not business days, counted from the invoice date (unless the contract explicitly states otherwise). This is a common point of confusion — a Net 30 invoice dated on a Friday is still due 30 calendar days later, not 30 business days later, which would be roughly 6 weeks.
How to Calculate a Net 30/60/90 Due Date
Calculating the due date is simple: take the invoice date and add the number of days specified in the term. For example, an invoice dated January 1 with Net 30 terms is due January 31. An invoice dated January 1 with Net 60 terms is due March 2 (accounting for January having 31 days).
The tool above does this instantly — enter your invoice date and select your payment term, and the exact due date is calculated automatically, including for month-end edge cases where the day count crosses into a new month with a different number of days.
What Is Net 30 EOM?
"EOM" stands for End of Month. Net 30 EOM means payment is due 30 days after the end of the month in which the invoice was issued — not 30 days after the invoice date itself. This term is common with vendors who batch-invoice monthly. For example, an invoice dated January 5 under Net 30 EOM terms is due 30 days after January 31 (the end of that month), landing on March 2 — considerably later than a standard Net 30 term would allow for the same invoice date.
Why Payment Terms Matter for Cash Flow
For the business issuing the invoice, longer payment terms (Net 60, Net 90) mean waiting longer to receive cash, which can strain working capital — especially for small businesses and freelancers. For the business receiving the invoice, longer terms provide more flexibility to manage outgoing cash flow. This tension is why payment terms are frequently negotiated as part of vendor contracts, and why some suppliers offer early payment discounts (like "2/10 Net 30" — a 2% discount if paid within 10 days, otherwise the full amount is due within 30) to incentivize faster payment.
| Term | Meaning | Typical Use |
|---|---|---|
| Net 15 | Due in 15 days | Small vendors, retainer work |
| Net 30 | Due in 30 days | Most common B2B standard |
| Net 45 | Due in 45 days | Mid-size enterprise vendors |
| Net 60 | Due in 60 days | Larger enterprise contracts |
| Net 90 | Due in 90 days | Government and large corporate contracts |
| 2/10 Net 30 | 2% discount if paid in 10 days, else due in 30 | Early payment incentive |
| COD | Cash on delivery | New vendor relationships, no established credit |
| Due on Receipt | Payment due immediately | Freelancers, one-off small jobs |
What does Net 30 mean on an invoice?
Net 30 means payment is due 30 calendar days from the invoice date. It's the most common payment term in B2B invoicing. If an invoice is dated March 1, Net 30 payment is due March 31.
Are Net 30/60/90 terms calendar days or business days?
Net payment terms are almost always calendar days, not business days, unless the contract explicitly states otherwise. This differs from some legal or contract deadlines, which sometimes specify business days.
What is the difference between Net 30 and Net 30 EOM?
Net 30 counts 30 days from the invoice date itself. Net 30 EOM counts 30 days from the last day of the month the invoice was issued, which typically extends the due date further, especially for invoices issued early in the month.
What happens if an invoice is not paid by the due date?
Once an invoice passes its due date it is considered overdue or delinquent. Many vendors apply late fees or interest charges after this point, and repeated late payment can affect a business's credit terms with that supplier going forward.
What is "2/10 Net 30"?
This notation means the buyer receives a 2% discount if the invoice is paid within 10 days. If not paid within that window, the full invoice amount is due within 30 days. It's a common incentive to encourage faster payment.
How do I calculate a due date if my payment term isn't listed?
Select "Custom number of days" from the dropdown above and enter the exact day count. You can also use our Add Days to a Date calculator for the same calculation with more flexible date-math options.
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