Invoice Late Fee Calculator

Why charge late fees?

Late payments are one of the biggest frustrations for freelancers. A clear late fee policy in your contract encourages clients to pay on time and compensates you when they don't. The standard rate is 1.5% per month (18% APR), which is both common and legally defensible in most jurisdictions.

Simple vs compound late fees

Simple interest charges a fixed percentage of the original invoice amount for each period overdue. Compound interest charges interest on the total amount including previously accrued late fees. Most freelancers use simple interest because it's easier to calculate and explain. Check your local laws — some jurisdictions limit compound interest on consumer transactions.

Always include a late fee clause in your contract. Without it, you may not have the legal right to charge interest on overdue payments. This calculator helps you determine the exact amount your client owes.