The Best Client Payment Terms Analyzer What Net-30, Net-60, and Net-90 Are Actually Costing You
Freelancers rarely think about payment terms as a financial decision. This tool does the math: at your project volume, net-60 means a specific dollar amount of working capital tied up in accounts receivable at all times, earning you nothing. It also shows exactly what switching to net-15 is worth per year.
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What is net-60 actually costing you? Working capital tied up in AR, opportunity cost at your savings rate, invoice float count, and the annual value of switching to net-15 or net-30. Includes late-payer adjustment.
- ✗No working capital calculation. 'Net-60 is slow' is obvious. '$23,000 sitting in AR at any given moment, costing you $1,150/yr in opportunity cost' is actionable. Most tools stop at the observation. This one gives you the number.
- ✗Late payer reality isn't modeled. 'Net-30' in the contract means net-45 in practice if 30% of clients pay late. The effective days outstanding — the real number — is always higher than the stated terms.
- ✗Opportunity cost is never quantified. Accounts receivable is float — money you've earned but can't invest or use. At a 5% savings rate, every $20,000 in AR costs $1,000/yr. No generic invoice tool shows this.
- ✗Projects outstanding (float count) isn't shown. Knowing that you have 5.4 invoices outstanding at any moment under current terms — and that this drops to 1.8 under net-15 — helps you understand collection workload, not just cash.
- ✗The 'what target terms are worth' calculation is missing. Switching from net-60 to net-15 has a specific annual dollar value. That number is the business case for renegotiating your contracts.
The key output: how much of your earned revenue is sitting in clients' accounts right now, unavailable to you. Computed as Daily Revenue × Effective Days Outstanding. Includes a late-payer adjustment — if 25% of clients add 15 days, your effective wait isn't 30 days, it's 33.75.
Working capital × your savings/investment rate. At 5% and $23,000 in AR, that's $1,150/yr in lost interest. At 7% (market return), it's $1,610. The calculator lets you set your own rate.
Switch between any standard terms (Net-7 through Net-90) for both current and target. See the delta in working capital, opportunity cost, and outstanding invoice count. The annual savings from tighter terms is the number to put in front of clients when negotiating.
At any given moment, how many projects are you waiting to be paid for? Computed as Projects/Year × (Avg Days / 365). This is the collection overhead number — fewer outstanding invoices means fewer follow-ups, less stress, and less time spent chasing payments.
| Feature | Typical Calculator | Reise Tools |
|---|---|---|
| Working capital tied up in AR (dollar amount) | ||
| Late-payer adjustment (effective days outstanding) | ||
| Annual opportunity cost at your savings rate | ||
| Projects outstanding (invoice float count) | ||
| Side-by-side: current vs target terms comparison | ||
| Annual value of switching terms | ||
| ShowMath with DSO formula and AR management concepts | ||
| Free with no account required |
Every Reise calculator has a ShowMath panel — expand it and you see the exact formula with your actual numbers substituted in. Not a result. Not a black box. The full derivation, step by step.
The business case for tighter payment terms isn't just cash flow — it's the opportunity cost of float, the collection overhead of multiple outstanding invoices, and the stress tax of waiting to be paid for work you've already done. Net-15 isn't aggressive — it's standard in most industries. The annual savings from switching are usually enough to justify a 5-minute contract conversation.
Was that project actually worth it? Enter hours by type (calls, work, revisions, admin), project expenses, payment received vs outstanding, and opportunity cost. See your true effective hourly rate, profit margin, and a composite client score (0–100).
When to raise your freelance rates and by how much. CPI compound inflation adjustment, market range by discipline (design/dev/writing/marketing/consulting), income target rate, and a client attrition model — what happens to income if 20% of clients leave after the raise.
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