Calculate exactly how much to charge for overdue invoices. Get a fee breakdown, total amount due, and ready-to-use wording for your invoices and payment policies. Jurisdiction-aware.
Common: 1–2% per month (18% annually)
Days after due date before fees apply. Common: 0–5 days.
Invoice Amount
$1000.00
Late Fee
+$15.00
1.5% per month × 1.0 months
Total Due
$1015.00
| Days Overdue | Billable Days | Late Fee | Total Due |
|---|---|---|---|
| 7 days | 7 days | $3.50 | $1003.50 |
| 14 days | 14 days | $7.00 | $1007.00 |
| 30 days | 30 days | $15.00 | $1015.00 |
| 60 days | 60 days | $30.00 | $1030.00 |
| 90 days | 90 days | $45.00 | $1045.00 |
A late payment fee of 1.5% per month will be applied to the outstanding balance of any invoice not paid by the due date. Interest is calculated on a simple (non-compounding) basis.
Add this to your contracts and payment terms.
This invoice is 30 days overdue. A late fee of $15.00 has been applied (1.5% per month). The total amount now due is $1015.00.
Add this note to the overdue invoice.
Follow these guidelines to ensure your late fees are enforceable and maintain good client relationships.
Include late fee terms in your contract and on every invoice before work begins.
Check your jurisdiction's usury laws. Fees above the legal cap are unenforceable.
A 3–5 day grace period shows good faith and avoids penalizing minor delays.
Courts may void 'penalty' fees. Fees should reflect actual cost of late payment.
Everything you need to know about late payment fees.