Invoice Late Fee
Late payments are the most common cash flow problem freelancers face. Charging a late fee — and stating it clearly on your invoice — both compensates you for the delay and creates an incentive for clients to pay on time. Our late fee calculator computes the interest due on overdue invoices using either a flat fee, a percentage of the invoice, or a daily compound rate.
Common: 1.5%/mo = 18%/yr
Total Late Fee Owed
About the Invoice Late Fee Calculator
Late payments are the most common cash flow problem freelancers face. Charging a late fee — and stating it clearly on your invoice — both compensates you for the delay and creates an incentive for clients to pay on time. Our late fee calculator computes the interest due on overdue invoices using either a flat fee, a percentage of the invoice, or a daily compound rate.
How to use it
- Enter the original invoice amount and the invoice due date.
- Enter today's date (or the date you are calculating from).
- Choose your late fee method: flat fee, percentage (e.g. 1.5%/month), or daily compound.
- See the total amount due including accrued late fees.
Formula & methodology
Flat fee: Total = Invoice + Late fee amount. Monthly %: Total = Invoice × (1 + rate)^months_overdue. Daily compound: Total = Invoice × (1 + annual_rate/365)^days_overdue.
Common use cases
- Calculating how much a client owes after 45 days past due
- Sending a revised invoice with late fees added
- Deciding whether late fees are worth the client relationship risk
- Setting a late fee policy before signing new client contracts
- Estimating total collections value on aged receivables
Frequently asked questions
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