Payment Terms & Due Date Studio

Professional accounts receivable intelligence: Invoice due date with business day rollover, 2/10 Net 30 true APR solver, and DSO cashflow forecaster.

Workspace Currency

Invoice Date

Payment Terms

Weekend & Holiday Policy

Invoice Amount

OFFICIAL PAYMENT DUE DATE

Calculating...

Day of Week -

Calendar Days Ahead 30 Days

Early 2% Discount Price $2,450.00

Client Early Savings $50.00

Early payment discount formulas like "2/10 Net 30" (2% discount if paid within 10 days, otherwise full amount in 30 days) represent a massive annualized rate of return.

Early Cash Discount %

Discount Window (Days, e.g. 10 days)

Full Invoice Due Window (Days, e.g. 30 days)

ANNUALIZED COST OF CAPITAL (APR)

36.73% APR

Days Financed 20 Days

Annual Compounded APY 43.86% APY

💡 CFO Insight: If your buyer doesn't take the 2% discount and waits 20 extra days, they are effectively borrowing money at an exorbitant 36.7% annual interest rate!

Calculate your Days Sales Outstanding (DSO) and see how speeding up collections from 60 days to 30 days injects non-dilutive liquidity into your bank account.

Total Outstanding Accounts Receivable ($)

Total Credit Sales in Measured Period ($)

Measurement Period (Days)

CURRENT COLLECTION DSO

45.0 Days

Average Daily Credit Sales $1,000.00 / day

Cash Trapped in AR $45,000.00

Cash Unlocked if Reduced by 15 Days +$15,000.00

Understanding Payment Terms (Net 30, Net 60)

Net 30 means payment in full is expected within 30 calendar days from the invoice issuance date. If a due date falls on a weekend, commercial etiquette typically shifts settlement to the following Monday.

The Secret Math Behind 2/10 Net 30

Offering a 2% prompt payment discount gives customers a financial incentive to pay 20 days early. The formula for the annualized cost of giving or taking this trade credit is:

APR = (Discount % / (100 - Discount %)) × (365 / (Net Days - Discount Days))

Automate Due Dates with BillMaster97

Generate clean, compliant invoices with automatic Net 15, Net 30, and Net 60 calculations using BillMaster97.