Free Payment Terms Generator
Generate professional, state-aware payment terms for your invoices and contracts. Choose your industry, deposit structure, and preferences — get copy-pasteable language in seconds. No signup required.
Related free tools
Frequently asked questions
What payment terms should contractors use?▾
Most contractors use Net 30 with a 50% deposit before work begins and the remaining 50% due on completion. For larger projects ($10,000+), a three-payment milestone structure (33/33/34) or progress billing is common. Always include late fee language.
What is a typical late fee rate for invoices?▾
The most common rate is 1.5% per month (18% annually). Some states cap this lower — for example, California limits it to 10% per year for most contracts. This generator accounts for your state's limits.
Should I require a deposit before starting work?▾
Yes — especially for projects over $1,000. A deposit of 25–50% protects you from no-shows and demonstrates the client's commitment. For service businesses, 50% upfront is industry standard.
What's the difference between Net 15, Net 30, and due on receipt?▾
Net 15 means payment is due within 15 days of the invoice date. Net 30 gives the client 30 days. Due on receipt means payment is expected immediately. Shorter terms improve your cash flow but may not work for all clients.
Are these payment terms legally binding?▾
Payment terms on an invoice are generally enforceable if the client agreed to them (ideally in a written contract signed before work begins). This generator creates template language — have an attorney review it for your specific situation before relying on it.
Learn more
Payment terms that actually work