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Late fee calculator for overdue invoices
Enter the invoice, the late charge in your terms and how long it has been overdue to see what the customer now owes.
You can charge a late fee only if your contract or invoice terms said so before the work. A monthly charge of 1 to 1.5% of the overdue balance, or a flat fee, is common. States cap interest rates, so check your state's limit before setting yours.
Get paid without chasing
Sam sends invoices and polite, automatic reminders for every unpaid one, including invoices from Xero, QuickBooks, FreeAgent and Sage.
Start freeHow it works
Late charges = invoice amount × monthly rate × months overdue + flat fee
You can only charge what your contract or invoice terms said before the work started, and states cap how much interest you can charge. Check your state's limit, and put the late charge in writing on every quote and invoice.
Worked example
A $2,400 invoice is 2 months overdue and your terms charge 1.5% a month (18% a year). Late charges come to $72.00, so the customer owes $2,472.00.
This is a guide, not legal advice.
Questions
What late fee can I charge?
What your written terms say, within your state's legal limit. Many contractors use 1% to 1.5% a month; check your state before you set it.
Can I add a late fee if it wasn't in my terms?
Generally no. Add a late payment clause to your quotes and invoices now so it applies to future jobs.
Does charging a late fee get me paid faster?
Having one in your terms helps; a prompt, polite reminder schedule helps more. Most late invoices are paid after the first or second reminder.
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