Net 30 Payment Terms Explained
Net 30 means the full invoice amount is due 30 days after the invoice date. An invoice dated June 1 with Net 30 terms is due July 1. Shorter terms such as Net 15 or Due on Receipt get you paid sooner.
| Term | Meaning | Best for |
|---|---|---|
| Due on receipt | Payment is due as soon as the client gets the invoice | Small jobs, residential clients, repeat cash customers |
| Net 7 / Net 15 | Due 7 or 15 days after the invoice date | Short jobs and freelancers who want fast cash flow |
| Net 30 | Due 30 days after the invoice date | Business clients and commercial accounts |
| Net 60 | Due 60 days after the invoice date | Large companies that require long payment cycles |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount due in 30 | Encouraging early payment from business clients |
How to write Net 30 on an invoice
Put the terms and the actual due date next to each other, for example Terms: Net 30, Due: July 1, 2026. Printing the date removes any argument about when the 30 days began.
Choosing terms as a contractor or freelancer
- Homeowners and one-time clients: due on receipt or Net 7, often with a deposit up front
- Business and property-management clients: Net 15 or Net 30 is typical
- Large jobs: split billing into a deposit and milestone invoices instead of one long Net 30
- Cash flow tight: shorter terms plus a card payment link make paying easy
Late fees and early-payment discounts
If you charge a late fee, state it on the estimate or contract before the work starts and repeat it on the invoice. Rules about allowed late fees and interest vary by state, so check yours. An early-payment discount such as 2/10 Net 30 can speed up payment from business clients but reduces your margin, so price it in.
Make Net 30 actually mean 30 days
Terms only work if the invoice reaches the client and is easy to pay. Send it the day the work finishes, include a pay-online link, and schedule reminders before and after the due date. MyInvoice sends automated payment reminders and tells you the moment a client opens the invoice.
Common questions
Does Net 30 mean 30 days or one month?
Net 30 means 30 calendar days from the invoice date, not necessarily one calendar month. An invoice dated January 31 is due March 2 in a non-leap year.
Does the 30 days start on the invoice date or the delivery date?
Unless your contract says otherwise, the clock starts on the invoice date. Send the invoice promptly after completing the work so you do not lose days.
What is the difference between Net 30 and Net 60?
Only the length of the payment window: 30 days versus 60 days. Longer terms mean you wait longer to be paid, which strains cash flow for small businesses.
Can I charge interest if a client pays after Net 30?
Only if you stated the late fee or interest in advance, for example in your estimate or contract, and your state permits it. Check your state's rules before adding charges.
Set your terms once and let reminders do the chasing
Payment links, automatic reminders and open alerts so Net 30 means 30. Free for 14 days.
Start free for 14 days