What do Net 30, Net 60 and EOM mean?
Payment terms tell the client how long they have to pay. The number after "Net" is the number of calendar days from the invoice date:
| Term | Meaning | Typical use |
|---|---|---|
| Due on receipt | Pay as soon as the invoice arrives | Small jobs, new clients, deposits |
| Net 7 / Net 10 / Net 14 | Within 7, 10 or 14 days | Freelancers, small businesses |
| Net 15 | Within 15 days | Services, agencies |
| Net 30 | Within 30 days | The most common B2B default |
| Net 45 / 60 / 90 | Within 45, 60 or 90 days | Large corporations, government, distributors |
| EOM | End of the month the invoice was issued | Retail suppliers |
| 30 days EOM | 30 days after the end of the invoice month | Wholesale, trade accounts |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount in 30 | Encouraging early payment |
Which payment terms should you use?
Shorter is better for cash flow, but terms are also a negotiation with the client. Freelancers and small businesses usually do best with Net 14 or Net 15: long enough for a client's accounts team to process, short enough that you are not financing their business. Large companies often insist on Net 30 or longer; if so, ask for a deposit up front or milestone invoices. Whatever you choose, print the actual calendar due date on the invoice ("Due: 15 Dec 2026"), not just "Net 30" – it removes any ambiguity and is what this calculator gives you.
When the due date lands on a weekend
Most agreements treat a weekend or public-holiday due date as moving to the next business day. The calculator flags weekend due dates so you can adjust the date before sending the invoice. If the client misses the date, use the late fee calculator to work out any interest owed.
Counting the days
Net terms count calendar days, including weekends, starting from the invoice date (not the date the client received it or the date the work was delivered). Net 30 from 1 November is 1 December. EOM terms ignore the invoice day entirely and go to the last day of the month, which is why an invoice dated 2 November and one dated 28 November are both due on 30 November under EOM.
Frequently asked questions
Does Net 30 mean 30 business days?
No. Net 30 means 30 calendar days from the invoice date, including weekends and holidays, unless your contract specifically says business days.
What is the difference between Net 30 and 30 days EOM?
Net 30 counts from the invoice date. 30 days EOM counts from the last day of the month in which the invoice was issued, so it is always later – an invoice dated 5 March is due 4 April under Net 30 but 30 April under 30 days EOM.
What does 2/10 Net 30 mean?
The client may deduct 2% if they pay within 10 days; otherwise the full amount is due within 30 days. It is a common early-payment incentive on larger invoices.
Can I change payment terms after sending an invoice?
Only with the client's agreement. Terms are part of the contract, so set them in the quote or agreement before the work starts and keep them consistent on every invoice.