Invoice payment terms define the agreed timing and method for settling an invoice. State the due date clearly, explain any deposit or partial payment, and include payment instructions.
Invoice payment terms explain when payment is expected and how the customer can pay. They should match the agreement between the parties and be easy to find on the invoice. A clear calendar due date is often easier to act on than shorthand alone.
Common payment terms compared
| Term | Typical meaning | Example from 7 Oct 2026 |
|---|---|---|
| Due on receipt | Pay when the invoice is received | State a clear date if timing must be precise |
| Net 7 / Net 14 | Due within 7 or 14 days of the start event | Net 14 → due 21 Oct 2026 (calendar days from issue) |
| Net 15 | Due within 15 days | Due 22 Oct 2026 |
| Net 30 | Due within 30 days | Due 6 Nov 2026 |
| Net 45 / Net 60 | Due within 45 or 60 days | Longer cycles need an explicit calendar due date |
| Net 90 | Due within 90 days if agreed | Use only when both parties accepted that period |
| Custom | Fixed date or defined event | “Due on project sign-off” or “Due 1 Dec 2026” |
Terms alone can leave questions: calendar days or business days? From invoice date, delivery, approval or month-end? If those details matter, define them in the agreement and show the resulting date on the invoice. Use the due-date calculator for arithmetic—not to decide the contract term.
How to write payment terms on an invoice
- State the term the parties already agreed (for example Net 30).
- Show the calendar due date calculated from that term.
- List accepted payment methods and the instructions needed to pay.
- Note any deposit already received and the remaining balance.
- Add a contact route for billing questions.
Deposits and partial payments
A deposit is an agreed amount collected before or during work. A partial payment reduces the balance but does not settle the invoice in full. Show the original charge, payment received and remaining balance clearly in the records. A receipt can confirm each payment; do not mark the full invoice paid until the balance is settled.
Payment methods and instructions
List the methods you actually accept—such as bank transfer, card, a payment link or a regionally used method—and provide the correct details. See invoice payment methods. This site creates billing documents; it does not collect the payment.
Late charges and early-payment discounts
Only state an early-payment discount or late fee if it is part of the agreement and you have checked whether it is appropriate for your circumstances. This guide does not summarize local requirements or determine whether a fee may be charged. Avoid presenting a calculator estimate as a legal entitlement. The late-fee calculator performs an estimate from values you supply; it does not validate a contract or law.
Example wording
“Payment due 6 November 2026 (Net 30 from invoice date). Bank transfer: use invoice INV-2026-014 as the reference. Please contact us if the billing details need correction.” This example is only a drafting pattern—use your actual agreed terms and payment details.
Add terms to your invoice and check the due date before sending it. If payment is late, see the overdue invoice guide.
Frequently asked questions
What does Net 30 mean?
It usually means payment is due within 30 days, but the starting event and whether the days are calendar or business days should be defined in the agreement. Displaying a calendar due date avoids guesswork.
What is the difference between Net 15 and Net 30?
Both count days from an agreed start event. Net 15 expects payment within fifteen days; Net 30 within thirty. Always show the resulting calendar due date on the invoice.
Can I add late fees to an invoice?
Only if the charge is supported by your agreement and applicable rules. This guide and the calculator do not determine whether a fee is permitted or enforceable.
Should I list payment methods on the invoice?
Yes, list the methods you accept and enough accurate instructions for the customer to use them. Avoid including payment details you do not intend to share.
Where do I put payment terms on an invoice?
Place them near the totals or in a dedicated terms section so they are easy to find. Include the term label, calendar due date and how to pay.
General information only—not legal, tax or accounting advice. Requirements can vary by jurisdiction, transaction and agreement. Confirm what applies to your situation.