Net 60 Calculator | Invoice Payment Terms
Calculate payment due dates, early payment discounts, and late fees for Net 60 invoice terms. Streamline your accounts receivable and optimize cash flow.
Understanding Net 60 Payment Terms
Net 60 is an extended payment term allowing 60 days for payment from the invoice date. This generous term is typically reserved for enterprise clients, large contracts, and industries where longer payment cycles are standard practice.
How It Works
When you issue an invoice with Net 60 terms, the buyer has 60 calendar days from the invoice date to make payment. For example, an invoice dated January 1st with Net 60 terms would be due on Mar 1, 2024.
Common Variations
- Net 60 EOM: Payment due 60 days after end of month
- 2/10 Net 60: 2% discount if paid within 10 days
- Net 60 + 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 60 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 60
Advantages
- Highly competitive for winning large accounts
- Standard in certain industries (retail, government)
- Attracts enterprise and corporate clients
- Can justify premium pricing
- Builds long-term business relationships
Disadvantages
- Significant cash flow impact on sellers
- Higher default risk requiring credit insurance
- May necessitate invoice financing or factoring
- Requires substantial working capital reserves
- Complex accounts receivable management
Frequently Asked Questions
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