What does net 30 mean?

Net 30 meaning, in one line

"Net" is the full amount on the invoice. "30" is the number of days the client has to pay it. So an invoice for $6,000 with net 30 terms, dated June 1, asks for all $6,000 by July 1. No discount, no partial payment, just a deadline.

Payment terms are the rules you set for when you get paid. The common ones:

• Due on receipt. Pay when the invoice arrives.
• Net 7, net 15. A short window, common with repeat clients.
• Net 30. The usual choice for commercial and business-to-business work.
• Net 45, net 60. Longer windows some larger companies ask for.
• EOM terms. The count starts at the end of the month.
• 2/10 net 30. A discount for paying early, with net 30 as the backstop.

Enter your invoice date and terms in the calculator below to get the exact due date.

How to calculate net 30

The common convention is to count calendar days, starting the day after the invoice date. Weekends and holidays count. So:

1. Start from the invoice date, not the day the job ended or the day the client opened the email.
2. Add 30 calendar days. An invoice dated March 3 is due April 2. An invoice dated January 31 is due March 2 in most years.
3. Write the result on the invoice as an actual date: "Due: April 2, 2026".

Step 3 matters most. Some clients count from the day they received the invoice, or count business days. A printed due date ends that argument before it starts. The free invoice generator has a due date field right next to the invoice date.

If you invoice late, the clock starts late. A job finished on the 5th and invoiced on the 20th isn't due on net 30 until the 20th of next month.

Which payment terms should a tradesperson use?

It mostly depends on who signs the check.

Homeowners. Residential service work is usually due on receipt. The client is right there, the work is done, and there's no accounts department. The cleaning invoice example is due on receipt. Give a homeowner 30 days and the invoice can slide to the bottom of the pile.

Commercial clients, property managers and general contractors. They pay in batches through an accounts team and usually expect net 15 or net 30. The roofing invoice example uses net 30, which suits insurance and commercial work.

Before the first job for a business client, ask how they pay suppliers and what they need on the invoice. A missing purchase order number can hold up an otherwise correct bill.

EOM, 2/10 net 30 and other variations

Net 30 EOM means 30 days after the end of the month the invoice is dated. An invoice dated June 12 with net 30 EOM would be due July 30. People read EOM terms differently, so this is another place to print the date.

2/10 net 30 means the client can take 2% off if they pay within 10 days. Otherwise the full amount is due in 30. A worked example with a $6,000 invoice dated June 1:

• Paid by June 11: the client takes off $120 and pays $5,880.
• Paid after June 11: the full $6,000 is due by July 1.

A 2% discount is a real cost, but it can be worth it when waiting 30 days strains your cash. Spell it out in the notes ("2% discount if paid by June 11, otherwise $6,000 due July 1") so the client doesn't take the discount on day 25.

Net 60 doubles the wait. A net 60 invoice dated June 1 is due July 31. Only agree to it if the job's margin covers carrying your materials and labor for two months.

Deposits and progress payments on longer jobs

On a three-week job, net 30 can mean carrying materials and wages for close to two months. For bigger work, split the bill:

• A deposit before you start, often enough to cover materials.
• Progress payments at agreed stages: rough-in done, drywall up, final inspection passed.
• A final invoice for the balance, on whatever terms you agreed.

Put the schedule in the estimate so the client agrees before work starts. Each stage becomes its own numbered invoice; the guide to invoice numbers shows how to keep the series clean.

What to write on the invoice

Put the terms where the client looks for them, next to the dates and in the notes.

• Terms: "Net 30" or "Due on receipt".
• Due date: the actual date, worked out from the invoice date.
• How to pay: a payment link, bank details, or the methods you accept.
• Early payment discount, if you offer one, with its own deadline.
• Late fee, but only if you agreed it with the client up front and it's allowed where you work. Rules on late fees and interest vary by state and country, so check yours before you add one. A fee that appears for the first time on an overdue invoice tends to start a dispute, not end one.

In TapBill, you can add your own Stripe, PayPal or Venmo link, and it prints as a PAY button and QR code on the PDF. That helps with due on receipt, when you want the money before you drive away. For the rest of the invoice, the guide on how to make an invoice walks through every field, and the invoice templates show finished examples by trade.

Make a free invoice now

Frequently asked questions

How do you calculate net 30?

Take the invoice date and add 30 calendar days. An invoice dated September 10 is due October 10. The calculator on this page does it for any date and term, including net 15, net 45 and net 60.

What does $6000 net 30 mean?

It means the client owes the full $6,000 and must pay it within 30 days of the invoice date. There's no discount and no installment plan unless the invoice says so.

Is net 45 better than net 30?

It depends which side you're on. For the person paying, a longer window is better. For you as the one sending the invoice, net 30 means you get your money 15 days sooner. Shorter terms are better for your cash flow.

Is net 60 better than net 30?

For the client, yes, because they keep the money twice as long. For a small trade business, net 60 is usually harder to carry, since you've already paid for materials and labor. Agree to it only for clients who are worth the wait.

What is the difference between due on receipt and net 30?

Due on receipt asks for payment as soon as the client gets the invoice. Net 30 gives them 30 days. Residential clients usually pay on receipt; commercial clients usually expect net 30.

Is a "net 30 account" the same thing?

Not quite. In business credit, a net 30 account is a supplier account that lets your business buy now and pay within 30 days, that some businesses use to build business credit. This guide is about the terms you put on your own invoices to clients.