Free Tool for Freelancers

Invoice Late Fee Calculator

Calculate how much you can charge for overdue invoices. Learn about late fee policies and how to include them professionally.

Invoice Details
30 days
1 day6 months
Late Fee Structure
Choose how you calculate late fees
1.5%

Common range: 1-1.5% per month (12-18% annual)

Legal Disclaimer

Late fee laws vary by state and country. Some jurisdictions cap interest rates or require written agreements. This calculator is for informational purposes only. Consult local regulations or a legal professional.

Amount Owed After 30 Days
Original Invoice$1,500.00
Late Fee+ $22.50
Total Due$1,522.50

Effective annual rate: 18%

Fee Accumulation Timeline
30 days (1 month)$1,522.50
60 days (2 months)$1,545.34
90 days (3 months)$1,568.52
120 days (4 months)$1,592.05
Automate Late Fees

Quidbill automatically calculates and adds late fees to your invoices. Set your policy once and never chase payments manually.

  • Auto-add late fees to overdue invoices
  • Automated payment reminders
  • Professional late payment notices
Try Quidbill Free

$29/month • 30-day refund guarantee

How to Handle Late Invoice Payments

Can Freelancers Charge Late Fees?

Yes, freelancers can charge late fees, but there are important considerations:

  • Written agreement required - Your contract or invoice terms must clearly state your late fee policy before the work is done.
  • Reasonable rates - Most states allow 1-1.5% per month (12-18% annually). Higher rates may be considered usurious.
  • Clear communication - Include payment terms on every invoice ("Net 30, 1.5% monthly late fee after due date").

Common Late Fee Structures

There are three main ways to structure late fees:

1. Percentage of Invoice (Most Common)

Charging 1-1.5% of the invoice amount per month is the most common approach. This scales with the invoice size and is easy to understand.

  • Pros: Scales with invoice size, industry standard
  • Cons: Compounds over time, may need caps

2. Flat Monthly Fee

A fixed amount (like $25-50) added each month the invoice is overdue. Simple and predictable.

  • Pros: Easy to understand, no calculations
  • Cons: May be too low for large invoices

3. Daily Rate

Charging per day overdue (like $5-25/day) creates urgency but can add up quickly.

  • Pros: Creates immediate urgency to pay
  • Cons: Can seem aggressive, may damage relationships

Best Practices for Late Payment Policies

  1. Include terms in your contract - Specify payment terms, late fee policy, and collection procedures before work begins.
  2. State terms on every invoice - Remind clients of your policy on each invoice ("Due in 30 days. 1.5% monthly fee on overdue amounts").
  3. Send reminders before due date - A friendly reminder 3-5 days before due date reduces late payments.
  4. Apply fees consistently - If you waive fees for some clients, document why (first-time, partial payment, etc.).
  5. Know when to escalate - After 60-90 days, consider collections or small claims court for large amounts.

Sample Late Payment Terms

Here's language you can adapt for your invoices:

Payment is due within 30 days of invoice date. A late fee of 1.5% per month (18% annually) will be applied to all overdue balances. If payment is not received within 60 days, the account may be referred to collections and additional fees may apply.

Stop Chasing Payments Manually

Quidbill automates payment reminders and late fee calculations so you can focus on your work, not collections.

Start Free Trial Free Invoice Generator