Free late fee calculator
Late Fee Calculator
Estimate the late fee you can charge on an overdue invoice. Enter the invoice amount, your late fee rate, and how long it has been overdue.
Calculate the fee
Common monthly rates are 1% to 1.5%. Daily rates are typically much smaller.
Most states have usury caps and consumer protection rules. Check your local statute and your written contract before charging.
Estimated late fee
$15.00
Total balance owed including fee: $1,015.00
Invoice amount
$1,000.00
Monthly rate
1.50%
Days overdue
30
State
-
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How late fees work on overdue invoices
Late fees only apply when you have agreed to them in advance with your client. Put the fee policy in your estimate, contract, or invoice payment terms. A common policy is "1.5% per month" or a flat fee like "$25 after 14 days overdue".
Monthly percentage: the most common. Multiply the invoice amount by your monthly rate, then by the number of months overdue (days overdue divided by 30).
Daily percentage: rare for service work. Multiply the invoice amount by your daily rate, then by days overdue. Used in some interest-based contracts.
Flat fee: a one-time charge that does not grow over time. Easy to communicate, but penalizes a 3-day delay the same as a 90-day delay.
Many states cap how much interest or how high a late fee you can charge, and some require advance written agreement. Always check your state's usury and consumer protection statutes before adding a fee, and review your written contract or signed estimate first.
FAQs
Frequently asked questions
How much can I charge as a late fee on an invoice?
A common policy is 1% to 1.5% per month, or a flat fee like $25. The maximum you can legally charge depends on your state's usury and consumer-protection laws and on what you agreed in your contract. This calculator estimates the math; check your local statute for the legal cap.
Can I charge a late fee if it was not in my contract?
Generally no. Late fees usually need to be agreed in advance, in your contract, estimate, or stated invoice terms, to be enforceable. If you did not disclose a late fee up front, you typically cannot add one after the fact.
How do I calculate a monthly late fee?
Multiply the invoice amount by your monthly rate, then by the number of months overdue (days overdue divided by 30). For example, $1,000 at 1.5% per month, 30 days late, is $1,000 × 0.015 × 1 = $15.
Should I use a flat fee or a percentage?
A percentage scales with the amount and the delay, which feels fairer on larger invoices and longer waits. A flat fee is simpler to communicate but penalizes a short delay the same as a long one. Many service businesses use a monthly percentage.
Is charging a late fee worth it?
The fee itself matters less than the signal it sends: clients who know a late fee applies tend to pay on time. Pair a clear late-fee policy with automatic reminders and an online payment link to cut down on overdue invoices in the first place.
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