## Net 30 Terms Definitions

Net 30 terms is an example of credit terms used on an invoice. Net 30 terms or n/30 means that payment in full is due 30 days after the date of the invoice.

Net 30 terms are often combined with a discount for early settlement. For example 2% 10 days, net 30 terms or 2/10, n/30 means, that a 2% discount can be taken if payment is made with 10 days, otherwise the full amount is due within 30 days.

## Net Terms Example

Suppose an invoice is issued for 1,000 1% 10 days, net 30. If paid within 10 days a discount of 1000 x 1% = 10 can be taken and the amount paid would be 1000 – 10 = 990. If paid after 10 days then the full amount of 1,000 would have to be paid. Under the net 30 terms and conditions, the invoice must be paid within 30 days.

## Multiple step discounts

Variations in net 30 day terms exist to allow for multiple step discounts. For example, the invoice terms might be expressed at 3/10, 1/20, net 30, meaning that a 3% discount is available for payment within 10 days, a 1% discount is available for payment within 20 days, and the full amount must be paid within 30 days.

## Other examples of common settlement terms

**Net 30**terms: Full amount due within 30 days, sometimes shown as n/30.**Net 15**terms: Full amount due within 15 days, sometimes shown as n/15.**Net 20**terms: Full amount due within 20 days, sometimes shown as n/20.- Terms
**2/10. n/30**: 2% discount for settlement in 10 days, net 30 meaning the full amount is due within 30 days. - Terms
**1/10, n/30**: 1% discount for settlement in 10 days, net 30 meaning the full amount is due within 30 days. - Terms
**5/10, 2/30, n/60**: 5% for settlement within 10 days, 2% for settlement in 11-30 days, full amount due within 60 days. **Net 30 Terms EOM**: Payment is due in full 30 days after the end of the month (EOM) in which the invoice was issued.