How much should I add for Net 60 payment terms?

Add the financing cost for the expected days outstanding, expected credit loss, and collection administration, then gross up the quote so those costs do not reduce the intended cash price.

Is Net 60 the same as giving a customer a loan?

Economically, the seller finances the receivable while the buyer keeps the cash. The commercial and legal arrangement is still a sale on payment terms, not a bank loan.

What is the difference between a terms premium and a late fee?

A terms premium is included in the quote before work begins to cover expected payment economics. A late fee applies only after payment is overdue and may be limited by the contract or local law.

B2B payment terms pricing

Net 60 is a loan.
Price it like one.

Turn payment delay, financing, default risk, and collection time into the minimum quote that protects your cash price.

Runs in your browserNo client data savedShows the math

Your economics

Price the terms

Cash price

What you need to receive if paid today.Payment termsExpected extra delay

days

Annual cost of capital

Default probability

Recovery if unpaid

Collection/admin time

hrs

Internal hourly cost

Minimum safe quote

$10,580

+$580 · 5.8% terms premium

Financing the wait$261

Expected credit loss$169

Collection administration$150

This quote is grossed up so expected terms costs leave your original $10,000 cash price intact.

Negotiation table

Every extra day has a price

Due now

$10,367+3.7%

Net 30

$10,472+4.7%

Net 60

$10,580+5.8%

Net 90

$10,690+6.9%

The model

Not a late-fee calculator.

Finance the float.Price the actual days your cash is unavailable.
Reserve for loss.Expected default risk belongs in the quote before the work starts.
Count collection labor.AP portals, reminders, and follow-ups consume paid time.
Gross up, don't add up.The premium itself carries financing and credit risk.

Net 30 / 60 / 90 calculator guide

How to price payment terms into a quote

Terms pricing formula

(cash price + admin cost) ÷ (1 − financing rate − expected loss rate)

Use the days you realistically expect cash to remain outstanding—not only the stated Net 30, Net 60 or Net 90 deadline. The calculator above applies the same gross-up.

Worked Net 60 example

A $10,000 cash-price project with Net 60, 15 expected late days, 12% annual capital cost, 2% default probability, 20% recovery and $150 of collection time produces a minimum terms-inclusive quote of approximately $10,581.

The $581 uplift is a planning reserve for waiting, credit loss and administration.

How much should I add for Net 60?

There is no universal percentage. Price your own capital cost, expected payment delay, customer default risk and collection labor. Change the assumptions above to expose the quote uplift instead of relying on a generic surcharge.

Is Net 60 effectively a loan?

Economically, the seller finances the receivable while the buyer keeps the cash. The legal arrangement remains a sale on payment terms, so describe the output as pricing analysis—not interest or legal advice.

Terms premium or late fee?

A terms premium protects the quote before work starts. A late fee applies only after an invoice is overdue and can depend on contract language and local law. This tool models the first; it does not determine a lawful late fee.

Why gross up instead of adding costs?

The premium itself remains exposed to financing and default risk. Grossing up solves for the invoice amount that is expected to leave the original cash price intact after those costs.