Definition
1/10 Net 30 is an early payment discount term meaning the client can take 1 percent off the invoice if they pay within 10 days of the invoice date. Otherwise the full amount is due 30 days after the invoice date. It is a lighter version of 2/10 Net 30 for sellers with thinner margins.
Also called: 1 10 Net 30, 1/10 n/30
1/10 Net 30 in practice
The structure is the same as 2/10 Net 30: the first number is the discount percentage, the second is the discount window in days, and Net 30 is the final deadline. Only the size of the discount changes.
Paying 20 days early for 1 percent off is still worth about 18 percent a year to the client, which is enough to change behavior at companies that track discounts, while costing the seller half as much as 2/10 Net 30.
It suits distributors, wholesalers, and contractors whose margins cannot absorb 2 percent, and sellers who want to test whether a discount speeds up payment before offering a larger one.
Example
A $12,000 invoice dated June 5 with 1/10 Net 30 terms can be settled for $11,880 by June 15. After June 15, the full $12,000 is due by July 5.
1/10 Net 30 due date calculator
Pick an invoice date and a term. You will get the due date and a line you can put on the invoice.
Choose an invoice date to see the due date.
Due on receipt, Net 7, Net 15, and Net 30 fill the due date in Invoice Website. Other terms, such as Net 45, Net 60, 2/10 Net 30, EOM, and prox, go in custom terms.
Frequently Asked Questions
Is 1/10 Net 30 worth offering?
It is worth testing when clients pay late and you can absorb a 1 percent cost. If clients still pay near day 30, the discount is not motivating them, so drop it or try 2/10 Net 30.
What is the difference between 1/10 Net 30 and 2/10 Net 30?
Only the discount. Both give a 10-day discount window and a 30-day deadline. On a $5,000 invoice, 1/10 Net 30 takes $50 off and 2/10 Net 30 takes $100 off.
Related terms
- 2/10 Net 30 2/10 Net 30 is an early payment discount term meaning the client can take 2 percent off the invoice if they pay within 10 days of the invoice date.
- 2/10 Net 60 2/10 Net 60 is an early payment discount term meaning the client can take 2 percent off the invoice if they pay within 10 days of the invoice date.
- Early payment discount An early payment discount is a small percentage taken off the invoice total if the client pays before a set early deadline.
- Net 30 Net 30 is a payment term meaning the full invoice amount is due 30 calendar days after the invoice date.
- Payment terms Payment terms are the conditions on an invoice that state when and how the client must pay.
- Discount A discount on an invoice is a reduction in price, shown either as a percentage or a fixed amount, applied to a line item or to the subtotal.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.