What Does Net 30 Really Cost You?

When I send a $10,000 invoice, it feels like I’ve earned $10,000.

But if the payment terms are Net 30, I may not have that money for another month.

During that month, I still have bills to pay. I may need the cash for software, contractors, supplies, or ordinary living expenses.

So waiting has a cost.

For example, if my estimated annual cost of capital is 12%, waiting 30 days for a $10,000 invoice costs about:

$98.63

Waiting 60 days costs about:

$197.26

And waiting 90 days costs about:

$295.89

These numbers are only estimates. They are not late fees charged to the client. They simply show what it may cost me to have that money tied up.

That is why I made the Net 30 Cost Calculator.

You enter the invoice amount, choose the payment term, and add your estimated annual cost of capital. The result appears immediately.

It can also show what price would make Net 30 roughly equal to getting paid today.

I wanted to keep this tool simple.

It does not tell you whether to accept a client or how to write your contract. It just makes one hidden business cost easier to see.

Sometimes Net 30 is completely reasonable. A good client who always pays on time may be worth the wait.

But the wait is still part of the deal—and now you can put a number on it.

This calculator provides a simple estimate and is not financial, tax, or legal advice.