Payment terms
2/10 Net 30
2/10 Net 30 means the full amount is due in 30 days, but the client can take a 2 percent discount by paying within 10 days.
What 2/10 Net 30 means
The term 2/10 Net 30 packs two rules into one shorthand. The "2/10" part means the client may take a 2 percent discount if they pay within 10 days of the invoice date. The "Net 30" part means that, with no discount, the full balance is due within 30 days. The client chooses: pay early and save 2 percent, or pay the full amount by day 30.
Both windows are counted in calendar days from the invoice date. The 10-day discount window and the 30-day due date run at the same time, not one after the other, so a client who misses day 10 still has until day 30 to pay the full balance.
Why use an early-payment discount
An early-payment discount like 2/10 Net 30 is a tool to pull cash in sooner. By giving up a small slice of revenue, you give the client a clear financial reason to pay you in 10 days instead of 30, which improves your cash flow and reduces the chance an invoice slips into past due.
The trade-off is real, so size it deliberately. A 2 percent discount for paying 20 days early is a generous rate when annualized, which is exactly why it motivates buyers. Use it when faster payment is worth more to you than the small reduction in revenue, and skip it on invoices where you are comfortable waiting the full 30 days.
Example: You send a 5,000 dollar invoice dated June 1, 2026 with 2/10 Net 30 terms. If the client pays by June 11, they take the 2 percent discount and pay 4,900 dollars, saving 100 dollars. If they pass on the discount, the full 5,000 dollars is due by July 1, 2026, which is 30 days after the invoice date.
FAQs
Frequently asked questions
How is the 2 percent discount calculated?
The discount is 2 percent of the invoice total. On a 5,000 dollar invoice, 2 percent is 100 dollars, so paying within 10 days costs 4,900 dollars instead of the full 5,000.
Do the 10-day and 30-day windows run separately?
No, they run at the same time from the invoice date. The first 10 days are the discount window, and the full 30 days are the deadline for paying the full amount. Missing day 10 just means the discount no longer applies.
Is offering 2/10 Net 30 worth it?
It depends on how much faster payment is worth to you. A 2 percent discount to be paid 20 days sooner is costly when annualized, so use it when improving cash flow or reducing past-due risk outweighs the lost revenue.
What does the client pay if they miss the discount window?
They pay the full invoice amount with no reduction. On a 5,000 dollar invoice, that is the full 5,000 dollars, due by day 30.
Related terms
Net 30
Net 30 is a payment term that means the full invoice balance is due within 30 days of the invoice date.
Net 15
Net 15 means the full invoice amount is due within 15 days of the invoice date.
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made, for example "Net 30" or "Due on receipt."
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