What Is Net 30? Payment Terms Explained
A plain-language guide to the most common invoice payment terms.
Updated March 9, 2026 by invoice.Now.
Net 30 Definition
Net 30 means the full invoice amount is due within 30 calendar days of the invoice date. "Net" refers to the total amount owed after any discounts or deductions. The number that follows indicates the number of days the client has to pay.
Example with Dates
You send an invoice for $2,500 on March 5, 2026 with Net 30 terms.
- Invoice date: March 5, 2026
- Amount due: $2,500
- Payment terms: Net 30
- Due date: April 4, 2026
The client must pay the full $2,500 by April 4. Any payment after that date is considered late.
Other Common Payment Terms
Due on Receipt
Payment is expected as soon as the client receives the invoice. There is no grace period. This is the fastest payment term and works well for small one-off jobs, retail transactions, or situations where you have already completed the work and want immediate compensation.
Net 15
Payment is due within 15 days. A good middle ground for freelancers who want faster cash flow but still want to give clients a reasonable window. Common in freelance and small-business relationships where the amounts are moderate.
Net 30
The industry standard. Gives clients a full month to process payment. Most accounting departments are set up to handle Net 30, which makes it the safest default if you are unsure what terms to use.
Net 60
Payment is due within 60 days. Typically used by larger companies, government agencies, or enterprise clients with slower procurement cycles. Be cautious with this term if your cash flow depends on timely payments.
Early Payment Discounts
Some businesses offer a discount for paying early. This is written as a fraction-style notation:
2/10 Net 30 means the client gets a 2% discount if they pay within 10 days. Otherwise, the full amount is due in 30 days.
On a $5,000 invoice, paying within 10 days would save the client $100.
When to Use Each Term
- Due on Receipt: Small projects, new clients without established trust, or when you need cash flow immediately.
- Net 15: Ongoing freelance work, repeat clients, or mid-size projects.
- Net 30: Standard business-to-business transactions. Use this as your default unless you have a reason not to.
- Net 60: Enterprise clients, government contracts, or when the client specifically requests extended terms and you can afford the wait.
For guidance on how to phrase these terms on your invoices, see How to Write Payment Terms on an Invoice. To understand how terms connect to dates, read Invoice Date vs Due Date.
Create an invoice with payment terms