Invoice Payment Term Extractor (Net 30/60/90)
Paste invoice text to automatically extract payment terms like Net 30, due dates, and early-payment discounts.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
Total = (Subtotal - Discount) + Tax | Tax = (Subtotal - Discount) x Tax Rate
Add multiple line items (qty × unit price = line total). Subtotal = sum of all line totals. After-discount amount = Subtotal × (1 − discount%). Tax amount = After-discount × tax rate. Grand total = After-discount + Tax. Each line item is itemized separately so clients can see exactly what they are paying for.
Worked Examples
Example 1: Freelance Web Design Invoice
Problem:3 line items: Web Design ($2,500 x 1), Logo Design ($800 x 1), Content Writing ($150 x 5 pages). 10% discount, 8% tax.
Solution:Subtotal: $2,500 + $800 + $750 = $4,050\nDiscount (10%): -$405\nAfter discount: $3,645\nTax (8%): +$291.60\nTotal: $3,936.60
Result:Subtotal: $4,050 | Discount: -$405 | Tax: $291.60 | Total: $3,936.60
Frequently Asked Questions
What should an invoice include?
A professional invoice should include: your business name and contact info, client's name and contact info, unique invoice number, invoice date and payment due date, itemized list of products/services with quantities and unit prices, subtotal, any applicable discounts, tax amount and rate, total due, payment terms (Net 30, due on receipt, etc.), and accepted payment methods. For tax compliance, include your business tax ID and the client's if required.
How do you calculate sales tax on an invoice?
Sales tax is calculated on the subtotal after discounts. Formula: Tax = (Subtotal - Discount) x Tax Rate. For example, on a $1,000 subtotal with 10% discount: discounted amount = $900, then at 8% tax: $900 x 0.08 = $72 tax, total = $972. Tax rates vary by state/locality (0-10%+ in the US). Some services may be tax-exempt. Always check your local tax regulations.
What are standard payment terms?
Common payment terms: 'Due on receipt' (immediate), 'Net 15' (15 days), 'Net 30' (30 days, most common), 'Net 60' (60 days, for larger clients), '2/10 Net 30' (2% discount if paid in 10 days, otherwise due in 30). For new clients, consider requiring upfront payment or 50% deposit. Late payment penalties typically range from 1-2% per month. Always clearly state terms on the invoice.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy