Definition
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. Otherwise the full amount is due 60 days after the invoice date. Sellers use it to pull cash forward from clients who insist on long terms.
Also called: 2 10 Net 60, 2/10 n/60
2/10 Net 60 in practice
The first number is the discount percentage, the second is the discount window in days, and Net 60 is the final deadline. Both windows count calendar days from the invoice date.
The client gives up 2 percent to keep the money for 50 extra days, so skipping the discount costs them about 7 percent a year, far less than the roughly 37 percent under 2/10 Net 30. Expect fewer clients to take it than under 2/10 Net 30.
If a large client sets Net 60 as company policy, offering 2/10 Net 60 gives their accounts payable team a reason to pay you early without asking them to change their standard terms.
Example
A $20,000 invoice dated March 1 with 2/10 Net 60 terms can be settled for $19,600 by March 11. After March 11, the full $20,000 is due by April 30.
2/10 Net 60 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
How do you calculate 2/10 Net 60?
Take 2 percent off the invoice total if payment arrives within 10 days of the invoice date. A $20,000 invoice can be settled for $19,600 by day 10. After that, the full $20,000 is due by day 60.
Should I offer 2/10 Net 60 or ask for Net 30?
Ask for Net 30 first if the client will accept it. If they will only agree to Net 60, adding the 2 percent discount gives them a reason to pay much sooner while keeping their standard deadline.
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.
- 1/10 Net 30 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.
- Net 60 Net 60 is a payment term meaning the full invoice amount is due 60 calendar days after 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.
- Payment terms Payment terms are the conditions on an invoice that state when and how the client must pay.
- Cash flow Cash flow is the movement of money into and out of a business over a period.
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.