This guide is practical and concise—examples first, formulas and caveats after. For quick calculations, jump to the linked calculator.
Net 30 vs EOM: Picking the Right Invoice Terms
Both Net 30 and End of Month (EOM) are common in B2B. They produce very different due dates depending on when you invoice. Use the examples below to decide which aligns with your cash‑flow and your customer’s AP process.
Definitions
- Net 30: payment due 30 calendar days after the issue date.
- EOM: payment due on the last calendar day of the invoice month.
In both cases, companies often roll dates that land on weekends or public holidays to the next/previous business day. Our Invoice Due‑Date Calculator lets you choose the roll policy and export a clean .ics file.
Worked examples
| Issue date | Net 30 due | EOM due | Notes |
|---|---|---|---|
| Jan 10 | Feb 9 | Jan 31 | EOM collects sooner if you invoice early in the month. |
| Jan 28 | Feb 27 | Jan 31 | EOM is much sooner here; cash sooner, but stricter for the client. |
| Jan 31 | Mar 2 (or Mar 1) | Jan 31 | Net 30 spills into March; EOM stays in January. |
When to use each
Choose Net 30 if…
- You ship or deliver continuously and want consistent intervals.
- Your customer approves invoices quickly regardless of calendar month.
- Cash‑flow modeling prefers evenly spaced inflows.
Choose EOM if…
- Your customer’s AP batches payments at month‑end.
- Statements and aging are month‑centric.
- You invoice early in the month and want faster collection.
Rolling for weekends & holidays
Most contracts specify “If the due date falls on a non‑business day, it rolls to the next business day.” Others roll back. Be explicit in your terms. Example:
“Payment terms: Net 30, rolled forward to the next business day. US federal holidays observed.”
In the calculator, toggle roll forward / roll back / ignore and select the holiday region. Export to .ics so Finance has the date in their calendar.
Partial payments and installments
Large invoices sometimes use 30/60/90 schedules. A simple rule is to start from the same base and add the interval for each installment, then roll. Our calculator supports 1–12 installments and weekly or monthly intervals.
Template language you can reuse
Payment terms: End of Month (EOM). If the due date falls on a weekend or public holiday, it rolls forward to the next business day. Late fees apply after a 5‑day grace period.Common mistakes
- Writing “due in 30 business days” (uncommon and unclear). Use Net 30 (calendar days) instead.
- Forgetting to specify roll policy; creates disputes when due dates hit weekends.
- Not aligning with the client’s AP cycle; invoices get paid in the next batch.
See your schedule instantly with the Invoice Due‑Date Calculator.