Late Fee Calculator

A late fee is not a punishment for its own sake. It covers the extra work of chasing money you already earned. Reminder emails, bookkeeping, and the cash-flow hole all cost something. A fair fee is written into your invoice terms before the work starts, so the client is not ambushed on day 31.

Most small businesses pick one of three shapes. A modest monthly percentage, often around 1.5% of the unpaid balance. A small flat fee that fits tiny invoices where a percentage looks silly. Or annual interest converted to a daily amount for longer delays. Pick one method and use it every time. Mixing methods on the same client looks like you are making the number up.

• ●1.5% per month is common for B2B invoices
• ●A 5% flat fee is typical for smaller amounts
• ●Always mention late fees in your invoice terms

Enter the original amount, how many days the invoice is overdue, and the rule you already published. The calculator returns the fee and the new total. That is the number you put on a reminder or a revised invoice. Do not invent a higher figure because you are angry. Angry fees do not get paid. Predictable fees sometimes do.

Local law can cap interest. Some countries treat late fees as credit charges. This page does arithmetic. It is not a ruling for your jurisdiction. If the amount is large or the client is in another country, ask an accountant. Then put the agreed rule in your Payment Terms Generator copy so every future invoice matches what you just calculated.

Nothing you type here is stored. Refresh and it is gone. That is fine for a one-off chase. If late invoices are a weekly event, Incusia can send the reminder sequence for you and, on Pro, apply late-fee automation. Starter is $9 per month with unlimited invoices, and that price is locked for the life of the account.