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Late fee calculator for invoices

Work out the late fee on an overdue invoice as a monthly percentage, annual interest or a flat fee, and see the new balance to bill.

Overdue invoice

$

Your late fee terms

%

Use the rate in your payment terms. Limits vary by state and country.

Late fee

$72.00

$2,400.00 × 1.5% × 2 months

Original amount
$2,400.00
Late fee
$72.00
New balance
$2,472.00
Add it to an invoice

Free, private and instant: everything is worked out in your browser and nothing is sent anywhere.

How it's worked out.

A percentage per started month

The most common approach: a fixed percentage of the overdue amount for each month, or part of a month, that the invoice is late. At 1.5% a month, a $2,400 invoice that is 45 days late counts as two months, so the fee is $72.

A monthly rate, charged by the day

The same monthly percentage, spread evenly across the year and charged for the exact number of days late. It's fairer for invoices only a few days past due, and the fee grows a little each day.

Annual interest

An annual rate charged per day: amount × rate ÷ 365 × days late. This is how statutory late-payment interest is usually worked out.

A flat fee

A fixed charge, such as $35, added once the invoice is overdue. It's simple to explain and doesn't depend on the size of the invoice.

Questions, answered.

Can I charge a late fee if it wasn't in my terms?

Generally, a late fee should be agreed before the work starts, in your contract or the payment terms on your invoice. Adding one afterwards is hard to enforce. Our guide to invoice payment terms shows how to word it.

What's a typical late fee?

Many small businesses charge 1% to 2% a month on the overdue balance, or a modest flat fee. Some states and countries cap late fees and interest, so check the rules where you and your client are before you set a rate.

Can UK businesses charge interest on late payments?

Yes. Under UK late payment legislation, a business can usually claim statutory interest of 8% a year plus the Bank of England base rate on late payments from other businesses, plus a fixed sum for debt recovery. GOV.UK explains the rules and how to calculate it.

How do I add a late fee to an invoice?

Add it as its own line item, such as "Late fee: 2 months at 1.5%", so the client sees exactly what was added. You can do it in the invoice generator, and Pro's payment reminders can follow up for you.

Related tools and guides.

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