Invoice Payment Terms Guide

A practical reference for Net 7, Net 14, Net 30, Net 45, Net 60, Net 90, and end-of-month invoice payment terms — with worked examples, due date calculators, and guidance on how weekends and public holidays affect real operating due dates.

What invoice payment terms mean

Invoice payment terms define how long a buyer has to pay after receiving an invoice. They are stated on the invoice itself and form part of the commercial agreement between supplier and buyer. The most common format is "Net N", where N is the number of calendar days from the invoice date to the payment due date.

Payment terms serve two purposes: they set a clear expectation for the buyer and they determine when the supplier can legitimately follow up on overdue payment. Finance teams use them to forecast cash flow; accounts payable teams use them to schedule payment runs; accounts receivable teams use them to trigger payment chasers on the correct date.

The word net in this context simply means the full amount — it has no tax implication. Net 30 means the full invoice amount is due within 30 days, not that 30 days after the net (ex-VAT) amount applies.

Invoice Due Date Calculator Real Due Date Calculator

Payment terms reference

Net 7 through Net 90 — what each term means

Net 7

Payment due 7 calendar days from the invoice date.

Typical use: Freelance projects, small agencies, weekly supplier invoices.

With only 7 days, a weekend can immediately affect the real operating due date. If day 7 is a Saturday, the practical due date is Monday.

Net 14

Payment due 14 calendar days from the invoice date.

Typical use: Freelancers, small contractors, and fast-payment government procurement.

Net 14 is common in UK government supplier contracts where statutory prompt payment requirements apply.

Net 30

Payment due 30 calendar days from the invoice date.

Typical use: The most common B2B payment term across most industries and countries.

If the invoice is dated 1 March, Net 30 falls on 31 March. If 31 March is a weekend or public holiday, the real operating due date shifts forward.

Net 45

Payment due 45 calendar days from the invoice date.

Typical use: Larger enterprise buyers, manufacturing supply chains, and US retail.

Net 45 spans one and a half months, crossing multiple weekends. The nominal due date and real operating due date often differ.

Net 60

Payment due 60 calendar days from the invoice date.

Typical use: Construction, government procurement, and large wholesale buyers.

Crosses two full calendar months. Public holiday clusters (e.g. Christmas) can shift the real due date by several days.

Net 90

Payment due 90 calendar days from the invoice date.

Typical use: Commodity and raw material suppliers, some international trade.

Three calendar months out. Cross-border invoices may be subject to different public holidays at origin and destination.

The Invoice Due Date Calculator handles all of these terms — enter the invoice date, select the payment term or enter a custom day count, and get the exact due date instantly.

End-of-month terms

EOM, Net 30 EOM, and early payment discounts

End-of-month terms are common in manufacturing, retail buying, and some professional services. They base the due date on the end of the invoice month rather than the invoice date, which simplifies payment run scheduling.

EOM

Payment due at the end of the calendar month in which the invoice is issued.

Invoice dated 5 March → due 31 March.

Net 30 EOM

Payment due 30 days after the end of the month in which the invoice is issued.

Invoice dated 5 March → end of March is 31 March → due 30 April.

Net 60 EOM

Payment due 60 days after end of invoice month.

Invoice dated 5 March → end of March → due 30 May.

2/10 Net 30

A 2% early payment discount if paid within 10 days; otherwise the full amount is due in 30 days.

Commonly used in US trade to accelerate cash collection. The "2/10" part is a discount incentive, not a change in the standard due date.

Important

Why weekends and public holidays affect real due dates

Payment terms count calendar days to arrive at a nominal due date. But banks do not process payments on weekends or public holidays. If a Net 30 invoice falls due on a Sunday, the money cannot physically clear until Monday — and your accounts receivable team cannot legitimately chase the payment until then.

The same applies to public holidays. A due date falling on Christmas Day, Easter Monday, or a national bank holiday in the buyer's country effectively extends the payment window by one or more days. Finance teams that do not account for this may send early payment chasers, which can damage supplier relationships unnecessarily.

For cross-border invoices, both the supplier's and buyer's holiday calendars may be relevant — a date that is a working day in one country may be a public holiday in another.

Real Due Date Calculator Invoice Real Due Date Calculator Net 30 Real Due Date Calculator

Workflow