Free Late Fee Calculator
Calculate late payment fees and interest on overdue invoices. Supports flat fees, percentage rates, and compound interest.
Invoice Details
Late Fee Settings
Results
Fee Breakdown
Understanding Late Fees on Invoices
Common Late Fee Structures
- Flat fee: A fixed amount (e.g., $25-$50) charged regardless of invoice size
- Percentage fee: A percentage of the invoice amount (typically 1-2% per month)
- Combined: A flat fee plus percentage for larger overdue amounts
- Tiered: Higher rates for longer overdue periods
Best Practices
- Always include late fee terms on your invoices
- Send payment reminders before the due date
- Apply a grace period (1-15 days) before charging fees
- Check local regulations for maximum allowed rates
- Document all late fees in your contracts
Preguntas Frecuentes
How do I calculate late fees on an invoice?
Enter your invoice amount, due date, and payment date. Choose a late fee method (flat fee, percentage, or both), enter the rate, and the calculator will show you the late fee amount and total due.
What is a typical late fee for invoices?
Common late fee structures include 1-2% per month, a flat fee of $25-$50, or a combination. Many businesses charge 1.5% monthly (18% annually). Always check local regulations as some jurisdictions limit late fees.
What is the difference between simple and compound interest?
Simple interest is calculated only on the original amount. Compound interest is calculated on the original amount plus any accumulated interest. Compound interest results in higher total fees over time.
Can I charge late fees on invoices?
Yes, in most jurisdictions you can charge late fees if they are disclosed on the invoice and agreed to by the client. Include late fee terms on your invoices and in your contracts.
How many days late before charging a fee?
Most businesses apply late fees after a grace period of 1-15 days past the due date. Common terms include Net 30 (payment due in 30 days) with fees applied on day 31.
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