2/10 net 30 means the client can take 2% off the invoice if they pay within 10 days of the invoice date. If they don't, the full amount is due within 30 days. On a $5,000 invoice, the client pays $4,900 by day 10 or $5,000 by day 30.
It is one of the most common early-payment discounts in invoice payment terms, and it is a variation of net 30 payment terms. This guide shows how to calculate it, why the 2% works out to about 37% a year, and how to decide whether offering it makes sense for your business.
What does 2/10 net 30 mean?
The term has three parts, read left to right:
| Part | Meaning |
|---|---|
| 2 | The discount, as a percent of the invoice total |
| 10 | The discount window, in days from the invoice date |
| net 30 | The full amount is due 30 days from the invoice date |
You will also see it written as "2/10, n/30" or "2% 10, net 30." They mean the same thing. Stripe's guide to net payment terms describes net 30 the same way: the full amount is due within 30 days of the invoice date.
Both windows count calendar days, and both start on the invoice date unless the contract says otherwise. The client can pay anywhere in the first 10 days and take the discount, or anywhere up to day 30 and pay in full. After day 30 the invoice is late.
How do you calculate a 2/10 net 30 discount?
Multiply the invoice total by 2% to get the discount. Subtract it to get the early-payment amount.
Worked example on a $5,000 invoice dated March 3, 2026:
| Step | Calculation | Result |
|---|---|---|
| Discount | $5,000 x 2% | $100 |
| Amount if paid by day 10 | $5,000 - $100 | $4,900 |
| Discount deadline | March 3 + 10 days | March 13 |
| Amount if paid by day 30 | Full invoice total | $5,000 |
| Final due date | March 3 + 30 days | April 2 |
The dates move with the invoice date. When a window runs past the end of a month, carry the remaining days into the next month:
| Invoice date | Discount deadline (day 10) | Full amount due (day 30) |
|---|---|---|
| January 25, 2026 | February 4, 2026 | February 24, 2026 |
| March 3, 2026 | March 13, 2026 | April 2, 2026 |
| June 22, 2026 | July 2, 2026 | July 22, 2026 |
| November 20, 2026 | November 30, 2026 | December 20, 2026 |
If your invoice has tax on it, agree with the client whether the 2% comes off the total or only the pre-tax amount, and write that in the terms. Tax rules on early-payment discounts differ by country, so check with your accountant.
What is the effective annual rate of a 2/10 net 30 discount?
About 37% a year. That number gets quoted often but rarely explained, so here is where it comes from.
The client who takes the discount pays 20 days earlier than they had to (day 10 instead of day 30). In exchange, they keep $100 on a $5,000 invoice. From the client's side, they pay $4,900 early to avoid paying $100 more later.
- Cost of the 20 days. The $100 discount on the $4,900 paid is 100 / 4,900 = 2.04%.
- How many 20-day periods fit in a year. 365 / 20 = 18.25.
- Annualize it. 2.04% x 18.25 = 37.2% a year.
As one formula: discount % / (100 - discount %) x 365 / (full days - discount days). For 2/10 net 30 that is 2 / 98 x 365 / 20 = 37.2%.
That is a simple annual rate. If you compound it (the client could repeat the 20-day trade 18 times a year), it comes to about 44.6%. Either way, the discount is expensive money for the seller and a strong return for the buyer.
Is offering 2/10 net 30 worth it for a small business?
Usually not, unless getting paid 20 days sooner is worth more to you than 2% of the invoice. Run the test below before adding it to your terms.
The break-even rule: offer the discount only if your next-cheapest way to cover those 20 days costs more than 2% of the invoice.
Some examples on the same $5,000 invoice:
| Your alternative | What 20 days of it costs you | Offer 2/10? |
|---|---|---|
| Wait the extra 20 days, with savings to cover bills | $0 | No |
| A line of credit at 20% a year (example rate) | $5,000 x 20% x 20 / 365 = about $55 | No, $100 is more |
| A $150 late fee on a supplier bill you can't pay on time (example) | $150 | Yes, $150 is more than $100 |
| A client who normally pays on day 60 starts paying on day 10 | You gain 50 days for $100 | Often yes |
The last row matters most. Plenty of clients on net 30 actually pay on day 45 or 60. If the discount moves them to day 10, you gain 50 days instead of 20, and the annual rate falls to 2 / 98 x 365 / 50 = 14.9%. A discount that looks expensive on paper can be cheap next to a client who pays late as a habit.
For scale, compare it with card fees. At Stripe's standard US card rate of 2.9% plus 30 cents, a client paying $5,000 by card costs you $145.30 in fees. Some businesses offer the 2% discount only on bank transfers. The client saves $100 and you skip the card fee.
When the discount is not worth it, these usually work better:
- Shorter terms. Net 15 payment terms get you paid in half the time without giving anything away.
- A deposit. Asking for part of the fee up front, as covered in our guide to payment in advance, protects you on new or large projects.
- A late fee clause. It gives the client a reason to pay on time without discounting your price.
What are the other early-payment discount variations?
The same pattern works with any discount, window and due date. The annual rate changes a lot between them:
| Term | Discount | Window | Full amount due | Annual rate (simple) |
|---|---|---|---|---|
| 1/10 net 30 | 1% | 10 days | 30 days | 18.4% |
| 2/10 net 30 | 2% | 10 days | 30 days | 37.2% |
| 2/15 net 45 | 2% | 15 days | 45 days | 24.8% |
| 3/10 net 60 | 3% | 10 days | 60 days | 22.6% |
Each rate uses the same formula: discount % / (100 - discount %) x 365 / (full days - discount days).
1/10 net 30 is the gentler version. It costs you half as much and still gives cash-rich clients a reason to pay early. Longer terms like 2/15 net 45 and 3/10 net 60 usually come from large buyers, and they come with the cash flow problems covered in our guides to net 45 payment terms and net 60 payment terms.
How do you write 2/10 net 30 on an invoice?
Write the term, then spell out both dates and both amounts. The client's accounts payable team should not have to do any math.
Invoice date: March 3, 2026 Payment terms: 2/10 net 30 Pay $4,900 by March 13, 2026 (2% early payment discount), or $5,000 by April 2, 2026.
If you also charge a late fee, put it on the next line:
The early payment discount applies only to payments received by March 13, 2026. Invoices unpaid after April 2, 2026 are subject to a 1.5% monthly late fee.
Agree the discount and any late fee in your contract or proposal before the invoice goes out. A client who sees a discount for the first time on the invoice may take it late and argue about the difference.
How do you get paid on time with 2/10 net 30?
The discount only works if the client can pay inside 10 days. These steps help:
- Send the invoice the day the work is done. The 10 days start on the invoice date, so a late invoice shrinks the window.
- Put both dates and both amounts on it. Copy the wording above.
- Make paying online easy. A client who has to request a check run will miss day 10.
- Decide in advance how you treat a late discount. If the client pays $4,900 on day 14, either accept it as goodwill or invoice the $100 difference. Pick one rule and apply it every time.
- Chase on day 31, not day 45. Our guide to handling late-paying clients has email templates for each stage.
SolidInvoice lets clients pay by card or PayPal straight from the invoice, which helps them hit the 10-day window. Write your 2/10 net 30 terms in the invoice's terms field. The discount is not applied automatically, so when a client wants to pay inside the window, edit the invoice to add a 2% discount first and the pay link will charge $4,900. On Pro and higher plans, payment reminders go out automatically on the schedule you set. See the features page or pricing for what each plan includes.
2/10 net 30 FAQ
What does 2/10 net 30 mean?
2/10 net 30 means the client gets a 2% discount if they pay within 10 days of the invoice date. Otherwise the full amount is due within 30 days. On a $5,000 invoice, the client pays $4,900 by day 10 or $5,000 by day 30.
How is 2/10 net 30 calculated?
Multiply the invoice total by 2% to get the discount, then subtract it. A $5,000 invoice has a $100 discount, so the client pays $4,900 within 10 days. Count both the 10-day and 30-day windows in calendar days from the invoice date.
Is 2/10 net 30 a good deal for the buyer?
Yes, if the buyer has the cash. Paying 20 days early to save 2% works out to about 37% a year on a simple annual basis. Few other uses of spare cash return that much, which is why large companies with cash management programs often take the discount.
Is 2/10 net 30 worth offering as a freelancer?
Usually not, unless you need the cash sooner or the client normally pays late. Giving up 2% to get paid 20 days sooner costs you about 37% a year. Shorter terms such as net 15, a deposit, or a late fee clause are usually cheaper ways to get paid on time.
What happens if the client pays after day 10 but takes the discount anyway?
The discount no longer applies, so the client owes the full amount. You can invoice the difference or accept the payment as goodwill. Agree on which you will do in your contract, and write the discount deadline as a date on the invoice so there is no argument.
Can I show an early payment discount on a SolidInvoice invoice?
Yes. Write the 2/10 net 30 terms, both dates and both amounts in the invoice's terms field. SolidInvoice does not apply the discount automatically. When a client wants to pay within the window, edit the invoice to add a 2% discount, so the pay link charges the discounted amount. For a bank transfer, add the discount and record the payment.
Put both dates on the invoice and let clients pay online in a click. Start a free 14-day trial of SolidInvoice.