Late fee calculatorThe fee to add to an overdue invoice, and the new total
Free, no signup. Runs in your browser. All free tools
Late fee to add
$15.00
- Original invoice
- $1,000.00
- Months past due
- 1.00
- Yearly rate
- 18.0%
- New total due
- $1,015.00
Simple interest, counted by the day on 30-day months.
How the late fee is worked out
A late fee pays you for waiting. Charge a one-time flat fee, or monthly interest that grows the longer the invoice stays unpaid.
late fee = invoice × monthly rate × (days past due ÷ 30)
A $2,500 invoice at 1% a month that’s 45 days late is 2,500 × 0.01 × 1.5 = $37.50, for a new total of $2,537.50. This is simple interest: it’s charged on the original invoice, not on earlier late fees. A flat fee is added once the invoice is past due, however late it is.
Agree it before you need it
A late fee is only enforceable if the client agreed to it. Put the rate in your contract and on every invoice. With Tillage, contracts are generated from the approved quote and signed online, and invoices go out with reminders before and after the due date.
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Late fee questions
How do you calculate a late fee on an invoice?
Most businesses charge either a flat late fee or monthly interest. For monthly interest, multiply the overdue amount by your monthly rate and by the months it’s overdue: a $1,000 invoice at 1.5% a month that’s 30 days late carries a $15 late fee. The calculator above does both.
What is a typical late fee?
Commonly 1% to 1.5% a month (12% to 18% a year), or a flat $25 to $50. Whatever you choose, state it on the invoice and in your contract before the work starts, and keep it under your state’s legal maximum.
Is it legal to charge late fees?
In most cases, yes, if the fee is agreed in advance, on the invoice or in the contract, and stays within your state’s limits on interest. Check the maximum rate where you and your client are before you add interest.
How can I avoid chasing late payments?
Set clear terms up front, send the invoice as soon as the work is done, and remind clients before and after the due date. Tillage sends those reminders for you and lets clients pay online by card or ACH from the invoice, so there’s less to chase.
