How to Calculate 2/10 Net 30

2/10 Net 30 (or Two-Ten Net Thirty) is the slang name for supplier provided discounts on inventory orders given to retailers and restaurants that pay early. The name 2/10 net 30 actually represents one of the most common discounts, which big suppliers like UNFI use (learn more here about reasons to order from UNFI, or, if you happen to be looking for good wholesale suppliers, check out our post about our top 7 recommendations.)

The '2' represents the discount percentage of the order, so it's a 2% discount. The '10' represents the amount of days the retailer has to pay in. In order to receive the 2% discount, you must pay the supplier in 10 days. "Net 30" represents the amount of days the retailer needs to pay in general, even without the discount. All this being said, a discount could just as easily be 5/15 Net 45.

Ultimately, 2/10 Net 30 is a clever way to incentivize retailers to pay quickly, in which all parties win. The big problem is that store owners are generally very overwhelmed and track their invoices by hand. This naturally means that store owners are not fully taking advantage of the discounts their suppliers offer.

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