Frequently Asked Questions
How do I calculate a late fee?
For percentage fees: Late fee = Invoice amount × (annual rate / 12) × months overdue. For flat fees: simply add the flat amount. This calculator handles both automatically.
What is a typical late fee percentage?
Common late fee rates are 1.5-2% per month (18-24% annually). Some industries use a flat fee (e.g. $25-50 per month overdue). Check local laws as some regions cap late fees.
Can I charge late fees on invoices?
Yes, but late fee terms must be stated on your original invoice or contract. If not included upfront, you may not be able to legally enforce them. Always include payment terms and late fee policy on every invoice.
How do I add late fees to an invoice?
Create a new invoice referencing the original, add the original amount plus the calculated late fee, and note the days overdue. Use the invoice generator on this site to create professional updated invoices.
How it works
- Enter the original invoice amount and its original due date.
- Enter the date the payment was finally received (or today's date).
- Select the fee structure specified in your contract (e.g., 10% annual interest).
- The calculator automatically determines the days overdue and adds the legal penalty.
Tips for best results
- •Always state your late fee policy clearly on every invoice you send.
- •A standard commercial late fee is 1.5% per month (which equals 18% APR).
- •If a client disputes a late fee, offering to waive it in exchange for immediate payment of the principal is often the most pragmatic approach.