Calculate the fee you can charge for a late invoice.
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.
Invoice Late Payment Fee
Fee = invoice x annual rate / 365 x days late
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.
Charging late fees declares that receivables have a cost, which measurably firms up the payment terms customers actually follow.
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.