3/10 Net 30 payment terms: meaning, due date and discount cost

3/10 Net 30 at a glance

Type

Early-payment discount

Discount

3% if paid within 10 days

Full amount due

30 days after the invoice date

Cost of skipping the discount

56.4% a year simple, 74.3% compounded

Also written

3/10 n/30, 3% 10 net 30

Example dates

What the discount is worth

Skipping the discount buys 20 more days to pay, at a cost of 3% of the invoice: 56.4% a year as a simple rate (3/97 × 365/20), or 74.3% compounded.

Average amount owed to the supplier

Paying on the due date, about 30 days after the invoice date on average.

Setting up 3/10 Net 30 in your ERP

Business Central

Due Date Calculation 30D; Discount Date Calculation 10D, Discount % 3

Xero

Bills due 30 day(s) after the invoice date

NetSuite

Term with Days Till Net Due 30, % Discount 3, Days Till Discount Expires 10

QuickBooks Online and Sage Intacct also store payment terms with a due rule. Whether an early-payment discount is applied to the bill automatically differs by product (Sage Intacct AP terms can carry one; Xero terms set due dates only), so check the bill's due date and amount after setting up a new term.

What it means

3/10 Net 30 is a discount term. The buyer may take a 3% discount by paying within 10 days of the invoice date; otherwise the full amount is due in 30 days. The term is also written 3/10 n/30 or 3% 10 net 30. The discount counts from the invoice date, not from month end, and not from the date the invoice arrives in AP.

The discount is 3% for paying 20 days earlier than the net due date. On a $1,000 invoice the discount is $30, so paying early costs $970. On a $10,000 invoice the discount is $300, so paying early costs $9,700. On a $100,000 invoice the discount is $3,000, so paying early costs $97,000.

The net amount is still due in 30 days if the discount is skipped. With $250,000 a year of spend with one supplier, about $20,548 is owed on average, the same as on Net 30. With $1,000,000 a year of spend with one supplier, about $82,192 is owed on average, the same as on Net 30. With $5,000,000 a year of spend with one supplier, about $410,959 is owed on average, the same as on Net 30.

Working out the dates

Start with the invoice date. For an invoice dated Thursday, Jan 15, 2026, the discount is available until Sunday, Jan 25, 2026, and the full amount is due Saturday, Feb 14, 2026. For an invoice dated Friday, Feb 27, 2026, the discount is available until Monday, Mar 9, 2026, and the full amount is due Sunday, Mar 29, 2026. For an invoice dated Friday, Dec 18, 2026, the discount is available until Monday, Dec 28, 2026, and the full amount is due Sunday, Jan 17, 2027.

The 10-day discount window and the 30-day net due date are calendar-day counts from the invoice date. Do not count from the date the invoice is received, the date it is entered, or the date it is approved. An invoice dated Thursday, Jan 15, 2026 that reaches AP after the invoice date still has a discount date of Sunday, Jan 25, 2026.

Several of these dates fall on weekends. Saturday, Feb 14, 2026, Sunday, Mar 29, 2026 and Sunday, Jan 17, 2027 are full-amount due dates on weekends, and Sunday, Jan 25, 2026 is a discount date on a weekend. When a payment date falls on a weekend, check the supplier's stated terms and your payment calendar rather than assuming an extension. The vendor record should carry the term and the dates AP will work to.

Put the discount date and net due date on the invoice record when it is entered. The clerk who keys the invoice should see 3/10 Net 30, not just Net 30, so the 10-day window is not lost. The approver should see the same dates before the invoice moves to payment.

Is the discount worth taking?

The cost of skipping the discount is high. The discount is 3% for giving up 20 days of credit, and the cost of skipping the discount is 56.4% simple annual and 74.3% compounded annual. Compare 56.4% with your own cost of funds. If the cost of short-term borrowing is below that rate, taking the discount may be the cheaper choice; if your cash is tight, the comparison still belongs in the decision.

The cash-flow effect is smaller than the discount rate suggests. With $250,000 a year of spend with one supplier, about $20,548 is owed on average, the same as on Net 30. With $1,000,000 a year of spend with one supplier, about $82,192 is owed on average, the same as on Net 30. With $5,000,000 a year of spend with one supplier, about $410,959 is owed on average, the same as on Net 30. Taking the discount changes the payment date, not the average balance owed under the term.

Use the invoice examples to test the decision. On a $10,000 invoice the discount is $300, so paying early costs $9,700. On a $100,000 invoice the discount is $3,000, so paying early costs $97,000. The question is whether paying $9,700 or $97,000 early is better than keeping that cash for 20 more days, given your own cost of funds. Do not take the discount after the window; a late discount is a short payment and can create a supplier dispute.

Where these invoices go wrong

Keying the wrong term is the first failure. If 3/10 Net 30 is keyed as Net 30, AP sees only the 30-day due date and loses the 3% discount and the 10-day window. If the term is keyed with the wrong discount days, the discount date will be wrong. Match the vendor record to the invoice wording: 3/10 Net 30, 3/10 n/30 or 3% 10 net 30.

Counting from the received date instead of the invoice date is the second failure. An invoice dated Thursday, Jan 15, 2026 with a discount date of Sunday, Jan 25, 2026 does not become a later discount because it was received after the invoice date. AP teams that use the receipt date will take discounts after the window, or miss them when the invoice sits in a queue.

Paying a statement as well as the invoice is a third failure. A supplier statement may list an invoice that has already been paid. If AP pays the statement total and the invoice, the supplier is paid twice. Reconcile the statement to open invoices in the vendor record before paying, and do not treat a statement balance as a new liability.

Paying a re-sent invoice twice is a fourth failure. Suppliers re-send invoices by email or portal, and a re-sent invoice can enter AP as a new document. Check the invoice number, invoice date and amount against the vendor record before keying. If the invoice is already paid or scheduled, do not create a second payment. A duplicate $10,000 invoice is a $10,000 cash loss until it is recovered.

Questions