How due dates are calculated
- Due on receipt: the due date is the invoice date.
- Net 7 to Net 90: due date = invoice date + the number of calendar days.
- End of month (EOM): the last calendar day of the invoice's month.
- 2/10 Net 30: full amount due 30 days after the invoice date; the client may deduct 2% if it pays within 10 days. Discount = amount × 2%.
Dates are calculated in calendar days and account for month lengths and leap years.
Worked example
An invoice for $2,000 is dated March 1 with terms of 2/10 Net 30. The discount deadline is March 11, when the client can pay $1,960 (2% off, a $40 saving). Otherwise the full $2,000 is due on March 31. With Net 60 instead, the same invoice would be due on April 30.
Choosing payment terms
Shorter terms bring cash in sooner; longer terms are common with large companies and government buyers. Agree on terms before the work starts, ideally in a proposal or a payment agreement, and print both the terms and the exact due date on the invoice. If a payment is late, the late fee calculator works out the charges.
Frequently asked questions
Does Net 30 mean 30 business days?
No. Net 30 means 30 calendar days, weekends and holidays included. If the due date falls on a weekend, many businesses accept payment on the next business day, but say so in your terms if you want that to be the rule.
Do the 30 days start on the invoice date or when the client receives it?
By convention they start on the invoice date. Some clients count from the day they receive the invoice or the goods, so write the actual due date on the invoice instead of only the terms. That removes any doubt.
Is 2/10 Net 30 worth offering?
It speeds up payment, but it is expensive: a client who pays 20 days early saves 2%, which is roughly a 37% annual rate. Offer it when cash flow matters more than margin, or build the discount into your prices.
What does EOM mean on an invoice?
End of month: payment is due on the last day of the month the invoice was issued. Variants such as Net 30 EOM count 30 days from the end of that month. This calculator uses plain EOM.