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Invoice Late Payment Fee

Calculate the fee you can charge for a late invoice.

About Invoice Late Payment Fee

Monthly or annual late interest is prorated by days overdue, so a 18% annual rate on a 25-day-old invoice accrues a small, precise penalty. Charging late fees declares that receivables have a cost, which measurably firms up the payment terms customers actually follow.

Formula

Invoice Late Payment Fee

Fee = invoice x annual rate / 365 x days late

annual late rate
Stated yearly late-payment percentage

Worked example

With the default values below, Invoice Late Payment Fee returns Late Fee of $24.66. Change any input above and every figure here is recalculated in your browser.

Inputs used

Invoice amountminimum 0
2,000
Annual late rateaccepts 0–100 %
18 %
Days lateminimum 0
25

Results

Late Fee
$24.66
Total Amount Due
$2,024.66
Fee as Share of Invoice
1.23%

Step by step

  1. 1Values used
  2. 2Invoice Late Payment Fee
  3. 3Late Fee= 24.66
  4. 4Total Amount Due= 2,024.66
  5. 5Fee as Share of Invoice= 1.23

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Invoice Late Payment Fee calculated?

Fee = invoice x annual rate / 365 x days late Monthly or annual late interest is prorated by days overdue, so a 18% annual rate on a 25-day-old invoice accrues a small, precise penalty.

Why does Invoice Late Payment Fee matter?

Charging late fees declares that receivables have a cost, which measurably firms up the payment terms customers actually follow.

What values do I need to enter?

This calculator takes 3 inputs: Invoice amount, Annual late rate, Days late. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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