Net 15 Calculator | Invoice Payment Terms
Calculate payment due dates, early payment discounts, and late fees for Net 15 invoice terms. Streamline your accounts receivable and optimize cash flow.
Understanding Net 15 Payment Terms
Net 15 is a payment term that gives customers 15 days to pay from the invoice date. This middle-ground option balances seller cash flow needs with buyer convenience, often used in retail, distribution, and service industries.
How It Works
When you issue an invoice with Net 15 terms, the buyer has 15 calendar days from the invoice date to make payment. For example, an invoice dated January 1st with Net 15 terms would be due on Jan 16, 2024.
Common Variations
- Net 15 EOM: Payment due 15 days after end of month
- 2/10 Net 15: 2% discount if paid within 10 days
- Net 15 + COD: Combined terms for partial payment
Payment Term Comparison
| Term | Payment Window | Best For | Risk Level |
|---|---|---|---|
| Net 10 | 10 days | Fast-moving goods, trusted clients | Low |
| Net 30 | 30 days | Standard B2B transactions | Medium |
| Net 45 | 45 days | Large orders, established relationships | Medium |
| Net 60 | 60 days | Enterprise clients, large contracts | Medium-High |
| Net 90 | 90 days | Government, major corporations | High |
Best Practices for Net 15 Terms
Clear Documentation
Always state payment terms prominently on invoices, quotes, and contracts.
Credit Assessment
Evaluate new customers before extending Net payment terms to minimize risk.
Early Payment Incentives
Offer small discounts (1-3%) for payments within 10 days to improve cash flow.
Consistent Follow-up
Send payment reminders before and after the due date systematically.
Late Payment Policy
Establish and communicate clear consequences for late payments upfront.
Automated Invoicing
Use invoicing software to track due dates and automate payment reminders.
Advantages & Disadvantages of Net 15
Advantages
- Faster cash flow than Net 30 without being too restrictive
- Good compromise between seller and buyer needs
- Reduces accounts receivable aging
- Appropriate for moderate-sized transactions
- Maintains competitive positioning in many industries
Disadvantages
- Less common than Net 30, may require explanation
- Some large buyers may push for longer terms
- Requires disciplined follow-up on approaching due dates
- May not work for industries with long sales cycles
Frequently Asked Questions
Automate Your Invoicing
Stop calculating payment dates manually. PineBill automatically tracks due dates, sends payment reminders, and helps you get paid faster.