Fieldpaid › Free tools › Late Fee Calculator
To calculate a late fee: multiply the unpaid amount by your monthly rate (1.5% is standard) and prorate it by the days overdue. A $2,000 invoice at 1.5% per month accrues about $30 after 30 days. Enter your numbers below for the exact fee and total owed.
Late Fee Calculator
Work out the late fee on an overdue invoice and the total your client now owes. Enter the amount, your monthly rate, and how many days late it is.
Invoice details
1.5% per month (18% per year) is the most common contractor late fee. Check your state cap before charging.
Total now owed
—Original invoice plus the accrued late fee
Late fee
—
Accrued so far
Effective annual rate
—
Monthly rate × 12
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How contractor late fees actually work
A late fee gives an overdue invoice a real cost, which gives the client a reason to pay and gives you a reason to follow up that is not personal. The standard in the trades is 1.5% per month — about 18% a year — though some charge 1% and a few charge 2%.
Two rules make a late fee enforceable. First, you have to disclose it before the work — on the estimate, the invoice, or a signed contract. A fee invented after the invoice is overdue, with no prior notice, is hard to collect. Second, most states cap the interest rate you can charge on a commercial debt, so check your local limit before you set a number.
In practice, the late fee is less about the money and more about behaviour: having one written on every invoice changes how clients treat your due dates. For how to set terms that get you paid on time in the first place, read Contract Invoice Payment Terms and How to Get Paid Faster as a Contractor.
Built into Fieldpaid
Better than a late fee: get paid before it is due.
Fieldpaid sends every invoice with a card payment link and chases overdue ones automatically at day 7, 14, and 30 — cancelled the moment the client pays. Most invoices clear before a late fee is ever needed.
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Common questions
How much late fee can a contractor charge?
The most common contractor late fee is 1.5% per month, which is 18% per year. Some contractors charge 1% and a few charge 2%. Most US states cap the maximum interest you can charge on a commercial debt, so check your state limit before setting a rate, and always disclose the fee on the invoice before the work.
How do I calculate a late fee on an invoice?
Multiply the unpaid amount by your monthly rate, then prorate it by the days overdue. For a $2,000 invoice at 1.5% per month that is 30 days late, the fee is $2,000 × 1.5% = $30. At 60 days late it is $60. This calculator does the proration automatically for any number of days.
Can I charge a late fee if it was not on the invoice?
Generally no. To charge a late fee you need to have disclosed it before the work — on the estimate, the invoice, or a signed contract. A late fee added after the fact, with no prior notice, is hard to enforce. Put a clear late-fee line on every invoice so the charge is agreed up front.