Late fee calculator
Enter the invoice amount, how many days late it is and your fee terms, and you'll see the late fee and the new balance. The most common late fee for small businesses is 1.5% a month (18% a year) after a short grace period, or a flat fee of $25 to $50.
How it's calculated
If the invoice is still within the grace period, there's no fee. After that, a one-time fee is charged once; a monthly fee is charged for every 30 days (or part of 30 days) past the grace period. A percentage fee is the invoice amount × the rate; a flat fee is the same every time.
Questions
What is a reasonable late fee on an invoice?
Most small businesses charge 1% to 2% a month on the unpaid balance, or a flat $25 to $50. Many states cap late fees or interest, so check your state's limit before choosing a rate.
Can I charge a late fee if it isn't in my contract?
Generally no. A late fee needs to be agreed in advance, in your contract or in the payment terms the client accepted. Put the fee on every invoice and in your terms before the work starts.
Should I add a grace period?
A grace period of 5 to 10 days avoids charging clients who pay a few days late by accident and keeps the relationship friendly. The fee then applies from the end of the grace period.
Does a late fee get clients to pay faster?
A clear late fee on the invoice gives clients a reason to pay on time, but a reminder schedule matters more: a reminder before the due date and steady follow-ups after it get most invoices paid without ever charging the fee.
Get paid without chasing
Casey is an AI accounts receivable assistant. It sends your invoices, reminds clients before the due date and follows up after it by email, text, WhatsApp or phone until you're paid. It's free when clients pay on time. See how it works or read our guides on getting paid faster.
More free tools
Overdue invoice interest calculator
Calculate the interest owed on a late invoice by annual or monthly rate and days late.
Payment reminder generator
Write a friendly, firm or final payment reminder email and text message in seconds.
Invoice due date calculator
Turn payment terms like Net 30, EOM or 2/10 Net 30 into an exact due date.