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Late Payment Fee Calculator

Work out the fee on a late invoice.

How it is calculated

The tool applies one flat percentage to the overdue invoice: fee = invoice_amount × late_fee_pct ÷ 100 and total due = invoice_amount + fee. The invoice is in dollars and the fee is a percentage (1.5 means 1.5%). Both inputs must be zero or higher. There is no input for days late: the fee is charged once and does not grow with time, and it is not compounded. If your terms charge a monthly late fee, run the tool once for each month and add the amounts, or multiply the percentage by the number of months, because the tool itself will not do it. Whether a late fee is allowed, and how high it may be, depends on the contract and on local law, so check your own terms.

Worked example

An invoice for 2,400 is overdue and the contract states a 1.5% late fee. The fee is 2,400 × 1.5 ÷ 100 = 36. The total now due is 2,400 + 36 = 2,436. The tool prints a late fee of $36.00, a total due of $2,436.00 and echoes the invoice as $2,400.00. If the same 1.5% were charged each month for three months on the original amount, you would multiply the percentage by three.

Try this example →

Common mistakes

  • Expecting the fee to grow with the number of days late. The tool has no time input and gives one flat charge, so a monthly or daily late fee must be multiplied by the periods yourself.
  • Typing the rate as a decimal. Enter 1.5 for 1.5%; 0.015 is read as 0.015% and gives a fee of pennies.
  • Using an annual percentage rate as if it were a one-time fee. An 18% yearly rate is about 1.5% per month, and the field takes the percentage for the one charge you want.
  • Applying the fee to the wrong base, such as the invoice total when only part of it is unpaid. Enter the outstanding balance.
  • Charging a fee that the invoice terms never stated. The tool computes any percentage you type, but a fee has to be backed by an agreed term.

About this calculator

A late payment fee is a penalty charged on an overdue invoice, typically calculated as a percentage of the outstanding balance — either a flat one-time charge or accruing per day or per month the payment remains unpaid, depending on the terms stated in the original invoice or contract. Businesses set the rate and grace period upfront (commonly stated in the invoice's payment terms, like 'Net 30, 1.5% monthly late fee'), so the calculation depends entirely on those agreed terms rather than any fixed legal rate.

Freelancers, small businesses, landlords, and B2B vendors use late fees to encourage on-time payment and to compensate for the cost of delayed cash flow, while accounts-receivable teams calculate them to know exactly what to bill a client who's paid late.

This calculator takes the invoice amount and the late fee percentage and returns the fee owed as a single flat charge, along with the total due. It does not count days or periods late, so if your terms add a fee per month or per day, enter the combined percentage (the rate multiplied by the number of periods late).

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