What does net 30 mean on an invoice?
By Tim White · Glossary · Last updated
Net 30 means the full invoice amount is due 30 days after the invoice date. 'Net' is the total owed and 30 is the number of days you have to pay it. Net 15 and net 60 work the same way with shorter or longer windows.
How net terms work
An invoice dated June 1 on net 30 terms is due July 1. The clock starts on the invoice date, not the day it reached your inbox or the day someone approved it. Those dates can be a week apart, and that week is where late fees come from.
Variants you'll see
Not every term is a plain day count. Read the terms line before you put a date in the calendar.
- 2/10 net 30: take 2 percent off if you pay within 10 days, otherwise pay the full amount by day 30.
- Net EOM: due at the end of the month. Some vendors mean the end of the invoice month, others the end of the following month.
- Net 30 EOM: 30 days after the end of the month the invoice is dated, so a June 5 invoice is due July 30.
- Due on receipt: no grace period at all.
Keeping track of due dates
Understanding net 30 is easy. Tracking 60 due dates across 25 vendors is where it breaks down. InvoiceJet reads the due date off each invoice and emails you on Mondays with what's overdue and what falls due in the next two weeks.
Common questions
Does net 30 mean business days or calendar days?
Calendar days, unless the invoice says business days. If you're unsure, pay by the earlier date.
What's the difference between net 30 and due on receipt?
Net 30 gives you 30 days from the invoice date. Due on receipt means payment is expected as soon as the invoice arrives.
Sources
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