What does Net 30 mean on an invoice?

Net 30 means the invoice is due 30 calendar days after the invoice date. For example, an invoice dated 1 January with Net 30 terms is due on 31 January. The term 'Net' refers to the net amount owing, not a deduction. Net 30 is one of the most common payment terms in B2B invoicing.

What is the difference between Net 30 and 30 days EOM?

Net 30 means 30 days from the invoice date. '30 days EOM' (End of Month) means 30 days from the end of the month in which the invoice was issued. An invoice dated 5 January with 30 days EOM is due on 2 March (30 days after 31 January), whereas the same invoice with Net 30 terms is due 4 February. This calculator uses standard Net days from invoice date.

What does 'Due on receipt' mean?

Due on receipt means payment is expected immediately upon the client receiving the invoice. In practice, most clients will process payment within a few days of receipt. It is most commonly used by freelancers for small or one-off jobs where there is no ongoing relationship.

What payment terms should I use as a freelancer?

Net 14 or Net 30 are the most common terms for freelancers. Net 14 improves cash flow by getting paid faster. Net 30 is more familiar to larger businesses. For smaller jobs, Due on receipt is reasonable. Avoid Net 60 unless your client specifically requires it, as it significantly delays your cash flow.

Are payment terms calculated in calendar days or business days?

Standard payment terms like Net 30 use calendar days, not business days, unless explicitly stated otherwise (e.g. '30 business days'). This calculator uses calendar days. A Net 30 invoice dated on a Friday is due on the corresponding Sunday 30 days later, though in practice clients will typically pay on the nearest business day.

Invoice Due Date Calculator - Net 30, 60, Custom

What are invoice payment terms?

Payment terms define the period within which an invoice must be paid after it is issued. They are agreed between the supplier and the client, either in the contract, in a signed quote or proposal, or stated on the invoice itself. The most common payment terms in business-to-business invoicing are Net 30, Net 14, and Net 60, where the number represents the number of calendar days from the invoice date by which full payment is due.

The word "Net" in these terms does not refer to a deduction or a net price. It comes from Latin (nettus, meaning clean or clear) and simply means the total amount of the invoice must be cleared by the due date. "Net 30" therefore means the full invoice amount must be paid within 30 days.

Common payment terms explained

Due on receipt: Payment is expected immediately. In practice this usually means within a few business days. Suitable for small or one-off jobs.
Net 7: Payment due within 7 calendar days. Used for small transactions or where cash flow is critical.
Net 14: Payment due within 14 calendar days. A good default for freelancers - faster than Net 30 but gives clients a reasonable window.
Net 30: Payment due within 30 calendar days. The most widely used standard in B2B commerce, particularly in the UK and US.
Net 60: Payment due within 60 calendar days. Common in larger enterprises or when the client explicitly negotiates longer terms. Under UK law, agreed terms between businesses cannot normally exceed 60 days unless the terms are not grossly unfair to the supplier.
EOM (End of Month): Payment is due at the end of the month in which the invoice was issued, or a fixed number of days after end of month. Not supported by this calculator, which uses days-from-invoice-date.

How are due dates calculated?

Due dates are calculated in calendar days from the invoice date (not from the date the invoice is received, unless your contract specifies otherwise). Calendar days include weekends and bank holidays. So a Net 30 invoice issued on a Wednesday is due on the corresponding Friday 30 days later, even if that falls on a public holiday. In practice, payments falling on a weekend or bank holiday are typically processed on the next business day.

The calculation is straightforward: add the number of days in your payment terms to the invoice date. This calculator handles month-end edge cases (e.g. a Net 30 invoice dated 31 January will return 2 March in a non-leap year).

What payment terms should you use?

The right payment terms depend on your industry, client size, and cash flow needs. A few considerations:

Shorter terms improve cash flow. Net 14 gets you paid twice as fast as Net 30 in theory.
Larger corporate clients often have fixed internal payment cycles (30 or 60 days) and may push back on shorter terms.
For new clients without an established relationship, shorter terms and a deposit reduce risk.
Under UK law, the default payment period is 30 days if no terms are agreed. Agreed B2B terms cannot normally exceed 60 days.
Freelancers in creative and professional services commonly use Net 14. Agencies dealing with larger brands often accept Net 30 or Net 45.

When does a UK invoice become legally overdue?

A UK invoice becomes overdue the day after the payment due date. At that point, the creditor's right to claim statutory late payment interest under the Late Payment of Commercial Debts (Interest) Act 1998 begins to accrue. If no payment terms were agreed, the default period is 30 days. Tidybill tracks due dates automatically and sends payment reminders on a schedule you configure. Use the late payment interest calculator to work out the interest on an overdue invoice.

Invoice payment terms and your contract

Payment terms stated on an invoice are not automatically legally binding if they differ from a previously agreed contract. The best practice is to agree payment terms in writing before any work begins - in a contract, statement of work, or signed proposal - and then repeat them on each invoice. This removes any ambiguity and gives you a clear basis to claim late payment interest if the client pays after the due date.

Tidybill lets you set a default payment term on your account (applied to every invoice) and override it per client. See Tidybill pricing - free plan available.

Invoice Due Date Calculator

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