3 15 Net 30 Calculator

What is 3-15-Net-30?

The 3-15-Net-30 payment terms mean that a customer has 3 days to pay the invoice amount in full, and if not paid, they have an additional 15 days to pay the invoice amount plus a late fee or interest charge. The "Net-30" part refers to the standard 30-day payment period, but with the 3-15 structure, it provides a grace period.

This payment method is commonly used in business-to-business (B2B) transactions to extend payment terms while allowing for a short grace period to encourage early payment.

How to Use This Calculator

1. Enter the invoice date in the calculator.
2. Enter the invoice amount.
3. Select the interest rate (if applicable).
4. Click "Calculate" to see the payment due dates and interest charges.

The calculator will display the payment due dates and any applicable interest charges based on the invoice date and the selected terms.

How 3-15-Net-30 Works

The 3-15-Net-30 payment terms work as follows:

1. Invoice Date: The date the invoice is issued.
2. 3-Day Grace Period: The customer has 3 days from the invoice date to pay the invoice amount in full.
3. 15-Day Payment Period: If the invoice is not paid within the 3-day grace period, the customer has an additional 15 days to pay the invoice amount.
4. Interest Charges: If the invoice is not paid within the 15-day period, interest charges may apply.

Example Calculation

Suppose you have an invoice dated January 1, 2023, for $1,000 with a 5% annual interest rate. The customer pays on January 20, 2023.

1. Invoice Date: January 1, 2023
2. Payment Date: January 20, 2023
3. Days Late: 19 days (since the 3-day grace period is included in the 15-day period)
4. Interest Charges: $1,000 × 0.05 × 19/365 ≈ $2.60
5. Total Amount Due: $1,000 + $2.60 = $1,002.60

If the customer pays within the 3-day grace period, no interest charges apply.