What is Due Date?
The deadline by which a client must submit payment to satisfy an invoice, marking when an invoice becomes overdue if unpaid.
Definition
The due date is the specific calendar date by which a client must submit full payment to satisfy an invoice. It is the external deadline that defines when an invoice transitions from current (on time) to overdue (past due). The due date is calculated from the invoice date, not the date the client receives or approves the invoice, and is determined by the payment terms agreed upon between the freelancer and the client — such as Net-15, Net-30, or Net-60.
How Payment Terms Determine the Due Date
The payment terms on an invoice define how the due date is calculated. Common payment terms include: Due on Receipt — the due date is the same day the invoice is received; Net-15, Net-30, Net-45, Net-60, Net-90 — the due date is 15, 30, 45, 60, or 90 days from the invoice date respectively; End of Month — the due date is the last day of the month in which the invoice was issued; and 2/10 Net 30 — the client can take a 2% discount if paid within 10 days; otherwise the full amount is due by day 30.
Why the Due Date Matters
The due date is the trigger for all subsequent invoice management actions. It is the date that marks the beginning of the overdue period, the date from which late fees may begin accruing if specified in the contract, and the date that signals to the freelancer's accounts receivable team that follow-up is needed. Setting appropriate due dates — and clearly communicating them — sets expectations and gives clients a clear deadline to work toward.
Best Practices for Due Dates
Always calculate the due date from the invoice date (not the date sent or received), as this is the industry standard and prevents disputes. State the due date explicitly on the invoice in both written and numeric format ("Due by January 31, 2026" and "Due: 01/31/2026"). Consider your client's typical payment run cycle when setting terms — if a client pays on the 15th of each month, an invoice received on the 20th will not be paid until the following month's run. Send the invoice as early as possible to start the clock sooner.
Due Date vs. Invoice Date
The invoice date is the date the invoice is issued; the due date is the deadline for payment. These are always different (unless payment is due on receipt). The invoice date starts the payment term clock; the due date is where the clock stops. For example, an invoice dated January 1 with Net-30 terms has a due date of January 31. It is important to keep accurate records of both dates for accounts receivable tracking and for calculating days sales outstanding (DSO).