Net 60 Payment Terms: What They Mean and What They Cost You

Net 60 means the client must pay the full invoice within 60 days of the invoice date. The 60 days are calendar days, so weekends and holidays count. For an invoice dated March 2, 2026, the due date is May 1, 2026: about two months after you send it.

Large companies and public bodies often ask for net 60. For a freelancer or small business, it means waiting a long time for money you already earned. This guide explains how net 60 works, what it costs you, and how to protect your cash flow if you accept it. For shorter terms, see net 15 and net 30.

What does net 60 mean?

Net 60 means payment of the full invoice amount is due 60 calendar days after the invoice date. The client can pay sooner, but does not have to. On day 61 the invoice is overdue.

How do you calculate a net 60 due date?

Add 60 calendar days to the invoice date. Because months have 28 to 31 days, net 60 is not the same as "two months later".

Check any date with the free invoice due date calculator, which also handles net 60 EOM and business days.

Why do large companies ask for net 60?

Large companies ask for net 60 mainly to keep cash in the business longer and to fit invoices into their own approval and payment process.

• Approval chains: an invoice may need a purchase order (PO) number, a manager's approval and a match to the contract before finance can pay it.
• Payment runs: many companies pay suppliers only on set days, such as once or twice a month.
• Working capital: every day they hold the money is a day it stays in their bank account instead of yours.

None of this is personal, and the terms are often negotiable for small suppliers. Ask.

What does net 60 cost a freelancer?

Net 60 means more of your earned money is always waiting to be paid. Here is a simple example for a freelancer who bills $4,000 a month and is always paid exactly on the due date:

The arithmetic is: monthly billing × days ÷ 30. Moving the same client from net 15 to net 60 means about $6,000 more of your money is always sitting with the client. If they pay late, it is more. Before you agree, check that you can cover two months of costs without that money.

How do you protect yourself on net 60 terms?

You can accept net 60 and still protect your cash flow with a few simple steps.

1. Ask for a deposit before the work starts, for example 30% to 50% of a fixed-price project.
2. Bill in milestones on longer projects, so each invoice is smaller and starts its 60 days sooner.
3. Offer shorter terms for the first project. Many companies agree to net 30 for a small first job.
4. Offer an early payment discount, such as 2/10 net 60, only if fast payment is worth it to you. See 2/10 net 30 for what a discount really costs.
5. Invoice on the day you deliver. The 60 days only start on the invoice date.
6. Get the details right the first time: the PO number, the right billing contact, the client's supplier form and their payment run dates. An invoice that is sent back starts again.
7. Price it in. Long terms are a cost to you. It is fair to reflect that in your rate.

Is there a legal limit on net 60 terms?

In the UK, yes: agreed payment terms between businesses must usually be within 60 days, and 30 days for public authorities, according to GOV.UK (late commercial payments). Longer terms are only allowed if they are not grossly unfair to the supplier.

The UK government has also put forward the Commercial Payments Bill, which would set a maximum of 60 days with few exceptions and make late payment interest mandatory (GOV.UK bill overview). It is not law yet: as of 1 November 2026 it is still going through Parliament, and no start date is set. Rules in other countries differ, so check your local law or contract.

How do you write net 60 on an invoice?

Write the term and the real due date, plus the client's PO number if they gave you one:

Payment terms: Net 60. Due date: May 1, 2026. PO number: 4500123456.

Make it in the free invoice generator and download the PDF; no account needed. For every term side by side, see the invoice payment terms guide.

What if a net 60 invoice is not paid on time?

Send a polite reminder the day after the due date, then follow up at regular steps; the overdue invoice email templates have wording for each stage. On the Starter and Pro plans, Due On Time sends these reminders by email after the due date and stops when the invoice is paid.