Free tool
Late fee calculator for overdue invoices
Work out the interest on an invoice that was paid late, from a monthly or yearly rate and the number of days, or add a flat fee. Then check that your local rules allow it.
A monthly rate times 12 is the yearly rate.
Count from the day after the due date.
Late fee
18% a year, about 0.0493% a day, on 45 days late.
- Amount overdue
- $2,500.00
- Late fee
- $55.48
- New balance
- $2,555.48
Rounded to the cent, half away from zero. Limits on late fees and interest differ by province, state and contract; check your local rules and put the fee in your terms before you charge it.
How it works
From the overdue amount to the new balance
- 01
Choose how you charge
Interest by the month, interest by the year, or one flat fee, whichever your payment terms say.
- 02
Enter the numbers
The amount overdue, the rate or fee, and how many days have passed since the due date.
- 03
Read the fee
The fee and the new balance, rounded to the cent, ready to add to the invoice or the next one.
Good to know
How the late fee is worked out
Simple interest by the day
The fee is the amount overdue times the yearly rate times the days late, divided by 365. Interest is not charged on earlier interest.
Monthly rates
A monthly rate times 12 is the yearly rate: 1.5% a month is 18% a year, about 0.0493% a day. Some terms charge a full month for any part of a month; this calculator charges by the day.
Flat fees
A flat fee is the same however late the payment is, like $25 once the invoice is overdue. Some businesses charge a flat fee and interest; work each out and add them together.
Check the rules first
Limits on late fees and interest vary by province, state and type of client, and a fee usually has to be in your terms before the work. Check your local rules or ask a professional before you charge one.
Put it on an invoice
From the number to the document
Questions
Something else? Write to support@sumocat.app.
How do I calculate a late fee on an invoice?
Multiply the amount overdue by the yearly rate and the days late, then divide by 365. $2,500 at 1.5% a month (18% a year) for 45 days is $55.48.
What is a normal late fee?
Many businesses charge 1% to 2% a month on the overdue balance, or a small flat fee. What you may charge depends on where you and your client are and on your agreement, so check your local rules.
Can I charge a late fee that is not in my terms?
Usually a late fee needs to be agreed before the work, in your estimate, contract or invoice terms. Put it in writing first, and check your local rules.
Can Sumocat remind clients about overdue invoices?
Yes, with Sumocat Pro. Sumocat emails a payment reminder on the due date and 3, 7 and 14 days after, until the invoice is paid.
Send the invoice.
Get paid.
- Free to download
- No caps on invoices
- Works offline