Payment Terms Calculator (2/10 Net 30)

How the Payment Terms Calculator (2/10 Net 30) works

The Payment Terms Calculator turns an early-payment term like "2/10 Net 30" into the two dates it actually contains: the day the discount window closes and the day the net balance is due. It takes your start date, discount percentage, discount window and net term, and returns both dates at once — plus what the discount costs in dollars, since a 2% discount is $20 given up on every $1,000 invoiced, and the annualised cost of not taking it. Both windows are counted in calendar days, not business days, and both are measured from the same day-zero anchor, so moving the anchor moves both deadlines together. When the last day of either window lands on a weekend or a public holiday on the calendar you select, the tool moves it to the next business day, the usual default for a contractual payment date, and says which day it moved from; untick the box if your terms make the calendar date final.

Reading the notation is the first step. In "2/10 Net 30," the 2 is the discount percentage, the 10 is the number of days to earn it, and Net 30 is when the full balance is due if the discount is skipped. The discount and net dates are both measured from the invoice date (or the date of receipt or delivery, if that is what the terms specify), which is why pinning down the start date in the terms matters as much as the numbers themselves — a discount window that starts on the wrong day closes on the wrong day.

The calculator is built to be read from either side of the invoice. A buyer uses it to see whether taking the discount beats holding cash to the net date; a supplier uses it to price what offering the discount costs and to enforce the discount date so a customer cannot take the 2% while paying late. Seeing both dates and the dollar figure side by side is what turns "2/10 Net 30" from a habit into a decision.

Worked example

Invoice $10,000 on Tuesday, 3 March 2026 with 2/10 Net 30 terms. The discount window closes on Friday, 13 March, and the net balance is due Thursday, 2 April. If the customer pays by the 13th they remit $9,800, giving up $200 to be paid 20 days ahead of the net date. Forgoing a 2% discount to hold cash those extra 20 days annualises to about 37.2% — the calculator shows this figure as the annualised cost of not taking the discount — which is why taking the discount is almost always right for the buyer — and why offering it is a real cost the supplier should weigh against what early cash is genuinely worth.

Frequently asked questions

What this calculator does not do

A limitation you know about costs far less than one you find after the deadline. These are the specific things this tool cannot work out for you.

• The next-business-day move is a default, not a universal rule. It is statutory in New York and (for holidays) California, common practice elsewhere, and any contract can override it by saying the calendar date is final. Untick the box for terms like that.
• The annualised cost of an early-payment discount assumes you would otherwise pay on the net date exactly. Paying late anyway changes the arithmetic entirely.
• It does not model the supplier’s right to charge statutory interest on a late payment.

Where these rules come from

The periods this calculator applies are taken from the primary sources below rather than from secondary summaries. Verify against them before relying on a date that matters.

• N.Y. General Construction Law § 25

  A contract payment due on a Saturday, Sunday or public holiday, or within a period ending on one, may be made on the next business day unless the contract indicates otherwise.

• California Civil Code § 11

  An act a contract requires on a holiday may be performed on the next business day.