Free tool
Late fee calculator
Enter the invoice amount and how many days late it is. Choose a flat fee or a monthly percentage and see the fee, the new total and a line to put on your invoice.
Late fee
$27.00
- Invoice amount
- $1,200.00
- Late fee
- $27.00
- New total due
- $1,227.00
Late by 45 days, which is 1.5 of a 30-day month.
A late fee of 1.5% per month, pro-rated daily, applies to any balance unpaid after the due date.
How to use the late fee calculator
- Enter the invoice amount: the unpaid balance, not the original total if part of it has been paid.
- Enter how many days past the due date the invoice is. Not sure? The invoice due date calculator counts it from the invoice date and terms.
- Pick a flat fee or a percentage per month. For a percentage, choose whether it is pro-rated by the day or charged by whole months.
- Read the late fee and the new total, then copy the wording under the result onto your invoice.
Flat fee or monthly percentage
A flat fee is one amount, such as $25, added once the invoice is late. It is simple to explain and the same for every customer. A percentage grows with the size of the invoice and with the time it stays unpaid, so a $200 invoice and a $5,000 invoice are treated differently.
Whichever you choose, say so before the work starts, not after the invoice is already late.
Pro-rated daily or whole months
Pro-rated daily spreads the monthly rate over 30 days: amount × rate × days late ÷ 30. Whole months charges the full monthly rate for every month, or part of a month, the invoice is late. One day late and thirty days late cost the same, and day 31 starts a second month.
For example, a $1,200 invoice that is 45 days late with a 1.5% monthly rate comes to $27.00 pro-rated daily, or $36.00 by whole months. This calculator uses a 30-day month. If your contract defines it differently, follow your contract.
Check the limits where you work
Late fees are not unlimited. Maximum late fees and interest rates are set by state law, and they can depend on the kind of customer and the kind of work. A contract can add its own terms. Check the rules where you work, or ask an accountant or attorney, before you put a fee in your terms. This calculator does the arithmetic. It does not tell you what you are allowed to charge.
Start with a reminder
A fee only works if the customer agreed to it, and you still have to collect it. A polite reminder is usually the first step. See how to follow up on unpaid invoices and invoice payment terms, or make the invoice itself with the free invoice generator.
Questions
Can I charge a late fee if it is not on the invoice?
In general, a late fee has to be something the customer agreed to before the invoice was late, for example in a quote, a contract or the terms on your earlier invoices. Rules vary by state, so check yours. This is general information, not legal advice. The safest habit is to put the fee in writing when you agree the job.
What is a normal late fee?
There is no single standard. Some businesses charge a flat amount, others a monthly percentage such as 1.5%, and many charge nothing and rely on reminders. What you can charge is limited by law where you work, so check that first, then pick something your customer would see as fair.
How many days late before a fee applies?
An invoice is late the day after its due date. Some businesses allow a grace period of a few days first. If you do, say so in your terms and enter only the days after the grace period here.
Does Paylark chase late invoices?
Paylark sends polite reminder emails before and after the due date and stops as soon as the invoice is paid. It is opening soon, and you can join the waitlist.
Keep going
Send invoices that get paid, from your phone.
Join the waitlist