IncomeChecker.com

Late Payment Fee Calculator

Work out the late fee on an overdue invoice. Choose a flat fee, a one-time percentage, or a percentage charged for each month late, and see the fee and the new total.

$
%
Late fee
$30.00
2 months at 1.5%
New total
$1,030.00

How the fee is calculated

  • Flat fee: the fixed amount you enter
  • One-time percentage: invoice amount × percentage
  • Monthly percentage: invoice amount × percentage × months late (any part of a 30-day month counts as a month)

Example. A $1,000 invoice that is 45 days late with a 1.5% monthly fee: that is 2 months, so the fee is $1,000 × 1.5% × 2 = $30.00 and the new total is $1,030.00.

Things to check

  • A late fee only holds up if it is in your contract or on the invoice terms before the work is done. State that on every invoice.
  • Many states cap late fees or interest, and rules for residential rent are often stricter. Check the limit where you operate.
  • This is simple, not compounding. Compound interest on late balances is a different calculation; see the late payment interest calculator for interest by day.

Frequently asked questions

How much can I charge as a late fee?

It depends on your contract and the law where you are. Common business terms are 1% to 1.5% per month. Some states cap the amount, so confirm the limit before you set one.

Do I need to put the late fee on the invoice?

Yes. State the fee and when it starts on the invoice or in your agreement before the work is done. A fee the customer never agreed to is hard to collect.

Is a late fee the same as interest?

They are different. A late fee is a charge for paying late. Interest is a rate charged on the unpaid balance for the time it is outstanding. Some agreements use one, some use both.

More free invoicing tools

Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.