Net 30
Net 30 is a payment term meaning the full invoice amount is due within 30 calendar days of the invoice date, unless the agreement says the 30 days start from delivery or from receipt of the invoice.
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Formula
Due date = Invoice date + 30 calendar days
Example: An invoice dated March 5 on Net 30 terms is due April 4. On Net 30 EOM terms the same invoice is due April 30, which is 30 days after March 31.
Net 30 means payment is due 30 calendar days after the invoice date. Paying on day 30 rather than on receipt keeps cash in the business longer without any penalty, which is why AP teams schedule payments to due dates.
Definition
Net 30 tells the buyer how long it has to pay. "Net" means the full amount after any credits or returns, and 30 is the number of calendar days allowed. It is one of the most common terms in business-to-business trade. Common variations are Net 30 EOM, where the 30 days start at the end of the invoice month, and 2/10 net 30, which adds a discount for paying within 10 days.
Why It Matters
Net 30 is the default payment term for most business transactions. Consistently meeting Net 30 deadlines maintains vendor trust and avoids late payment penalties that erode margins.
Examples
Standard Net 30
An invoice dated January 10 on Net 30 terms is due February 9. Paying on February 14 is 5 days late and may trigger a late fee if the contract includes one.
Net 30 EOM
An invoice dated January 15 on Net 30 EOM terms is due March 2 in a non-leap year, which is 30 days after January 31.
How Aequo AP Helps
Aequo AP captures the invoice date, due date and payment terms from each invoice, so approvers can see which invoices are due soonest and approve them in time to pay on schedule.
Start Free TrialFrequently Asked Questions
What does net 30 mean on an invoice?
Net 30 is a payment term meaning the full invoice amount is due within 30 calendar days of the invoice date, unless the agreement says the 30 days start from delivery or from receipt of the invoice.
Is net 30 from the invoice date or the delivery date?
By default it runs from the invoice date. Some contracts start the clock from delivery or from when the invoice is received, so check the agreed terms.
Does net 30 include weekends?
Yes. Net 30 means 30 calendar days, not business days. If the due date falls on a weekend or holiday, many companies pay on the business day before.
What is the difference between net 30 and 2/10 net 30?
Net 30 only sets the due date. 2/10 net 30 adds a 2% discount if you pay within 10 days; otherwise the full amount is due in 30 days.
What happens if you pay a net 30 invoice late?
The supplier may charge a late fee or interest if the contract allows it, put your account on hold, or offer you tighter terms in future. Repeated late payment can also hurt your business credit.
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