Payment terms Calculator

How it works

What are payment terms?

Payment terms are the deadline you give a client to pay an invoice, written on the invoice itself. “Net 30”, for example, means the full amount is due 30 days after the invoice date. Clear terms set expectations, make late payments easy to spot, and give you a firm date to chase from — which is why invoices with explicit terms get paid noticeably faster than ones that just say “please pay soon”.

Common payment terms explained

• Due on receiptPayment is expected immediately when the invoice arrives. Best for one-off jobs or new clients.
• Net 7 / Net 14Due in 7 or 14 days. Common for freelancers and small services who need cash quickly.
• Net 30Due in 30 days — the most widely used business standard, especially for corporate clients.
• Net 60 / Net 90Due in 60 or 90 days. Larger buyers often request these; weigh the cash-flow cost before agreeing.
• EOMEnd of month — due on the last day of the month the invoice was issued.
• 2/10 Net 30Full amount due in 30 days, but the client gets a 2% discount if they pay within 10 — a common early-payment incentive.

How to choose the right terms

Shorter terms protect your cash flow; longer terms can win or keep bigger clients. As a rule: use Due on receipt or Net 7–14 for new or one-off clients, Net 30 for established business relationships, and only stretch to Net 60–90 when the client's size justifies the wait. Whatever you pick, state it clearly on every invoice, set a firm due date (this tool gives you the exact one), and pair it with automatic reminders so you're not the one keeping track.

Frequently asked questions