How invoice payment terms work
Net payment terms (Net 30, Net 60, Net 90) mean the invoice must be paid within that many days from the invoice date. The default is calendar days unless the contract specifies working or business days. This calculator handles both - choose calendar days for standard net terms, or business days if your contract explicitly excludes weekends and bank holidays.
UK late payment rules
Under the Late Payment of Commercial Debts (Interest) Act 1998 (as amended), businesses in the UK can charge statutory interest on unpaid B2B debts. The current rate is 8% per annum above the Bank of England base rate. You do not need a contractual term to qualify - this is a statutory right. If you are owed money and payment is overdue, use our Late Payment Interest Calculator to estimate what you may be able to claim.
Net 30 vs working days - which to use?
If your contract specifies payment within '30 days', use calendar days. If it specifies '30 working days' or '30 business days', use the business-day mode to exclude weekends and UK bank holidays. If you are unsure which applies, check the contract terms or the buyer's purchase order conditions.
When the clock starts
For net terms, the clock starts on the invoice date - not the date you sent it or the date it was received. For EOM (end of month) terms, the clock starts at the end of the month of the invoice date. This calculator uses invoice-date-based terms only.
Important: This site is a planning aid, not legal advice. Payment terms are a contract matter - always verify against your contract and seek advice for overdue debts.
FAQs
What does net 30 or net 60 mean on an invoice?
Net 30 means payment is due within 30 days of the invoice date. Net 60 means within 60 days. Whether these are calendar days or working days depends on your contract - check the agreed terms.
Do UK late payment regulations apply?
Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998 (as amended), a business can claim statutory interest on unpaid B2B debts. The current rate is 8% above the Bank of England base rate. You do not need a contract term to claim this right.
Can I use business days for invoice due dates?
Yes - some contracts specify payment within a number of working days rather than calendar days. If your contract says '20 business days', use the business-day mode to exclude weekends and UK bank holidays.
What is the difference between net terms and EOM terms?
Net terms (e.g. Net 30) mean payment is due within 30 days of the invoice date. EOM (end of month) terms mean payment is due at the end of the month following the invoice date. This calculator uses invoice-date-based terms only.
Are bank holidays included in net day calculations?
Standard net day terms (Net 30, Net 60) use calendar days unless the contract specifies working days. If your contract says '30 days', use calendar mode. If it says '30 working days', use business-day mode.