3 15 Net 30 Calculation

What is 3-15 Net 30?

The 3-15 Net 30 payment terms are a common commercial payment method that combines two payment options:

• 3% discount if payment is made within 15 days of invoice date
• Full payment due by 30 days from invoice date

This system encourages early payments while providing flexibility for customers who need more time. The terms are typically written as "3% 15 Net 30" on invoices.

How to Calculate 3-15 Net 30 Terms

The calculation involves determining three key dates and amounts:

1. Discount due date (15 days after invoice date)
2. Full payment due date (30 days after invoice date)
3. Discount amount (3% of invoice total)

If payment is made before the discount due date, the customer pays the invoice total minus the discount. After the discount due date but before the full payment date, only the full invoice amount is due.

Example Calculation

Let's calculate 3-15 Net 30 terms for an invoice total of $5,000 issued on June 1, 2023:

If payment is made by June 16, the customer pays $4,850 ($5,000 - $150). After June 16 but before June 30, the full $5,000 is due.

Common Questions About 3-15 Net 30

What does "3-15 Net 30" mean?

It means you get a 3% discount if you pay within 15 days, otherwise full payment is due in 30 days.

Is the discount applied to the full invoice or remaining balance?

The discount is always calculated on the full invoice amount, not the remaining balance if partial payments are made.

Can I pay the full amount before the discount date and still get the discount?

Yes, paying the full amount before the discount due date qualifies you for the discount.

What if I make a partial payment before the discount date?

The discount applies to the full invoice amount, so partial payments don't affect the discount calculation.