Invoice late fee calculator
If your terms include a late fee, this shows what an overdue invoice has accrued: the days overdue, the fee, and the amount now due.
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Late fee so far
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Enter the invoice’s due date to work it out.
How the fee is worked out
The calculator uses simple interest, counted by the day. It takes the invoice amount, multiplies it by the yearly rate, and then by the share of a year the invoice has been overdue: days overdue divided by 365. A monthly rate is turned into a yearly one by multiplying by 12, so 1.5% a month is 18% a year.
For example, $1,275 that is 30 days overdue at 1.5% a month: $1,275 × 0.18 × 30 ÷ 365 is $18.86, making $1,293.86 due.
Your own terms may count differently, for instance a full month’s fee for any part of a month. If they do, your terms win, and this is only a guide.
Before you add a fee
A reminder usually works before a fee is needed. There are five to copy in overdue invoice emails, and how to word a fee in your terms is in invoice payment terms.
Putting the fee on an invoice
Add it as its own line, described so the client can check it: “Late fee, 30 days at 1.5% a month on INV-014”. Keep the original lines as they were, so the invoice still matches the one the client already has.
Questions
How is a late fee on an invoice calculated?
As simple interest on the unpaid amount: the amount, times the yearly rate, times the days overdue divided by 365. A rate of 1.5% a month is 18% a year, so $1,000 that is 30 days overdue accrues $1,000 × 0.18 × 30 ÷ 365, which is $14.79.
Can I charge a late fee if it wasn’t in my contract?
Generally a late fee has to be something the client agreed to before the work, in your contract or your terms. One added for the first time on an overdue invoice may not be enforceable. Put it in your terms for future work.
What is a typical late fee for a freelance invoice?
Fees are usually written as a percentage a month on the unpaid balance, and 1% to 1.5% a month is often used. What is allowed depends on where you and your client are, and some places cap the rate.
Is a late fee the same as interest?
A percentage charged for each month a balance is unpaid is interest on that balance. Some freelancers charge a flat fee instead. Either way it has to be in the terms the client agreed to.
The numbers are the easy part. Sandglass writes the invoice lines from your notes.
Free plan: 3 drafted invoices a month. No card.