Calculate statutory or contractual late payment interest and penalties on overdue invoices.
Calculate the interest owed on any overdue invoice using this free late payment interest calculator.
A late payment calculator computes the interest or penalty charges on an invoice that has not been paid by its due date. You enter the overdue amount, the number of days past due, and the interest rate, and the calculator shows the total interest owed.
Many businesses include a late payment clause in their invoice terms, such as 1.5% per month on overdue balances. This tool calculates the exact charge.
Late payments hurt your cash flow. If your money is sitting in a client's bank instead of yours, you are essentially giving them an interest-free loan. Charging late fees compensates you for this delay and motivates prompt payment.
Even if you rarely enforce it, having a late fee clause discourages late payment behaviour.
Multiply the overdue amount by the daily or monthly interest rate and then multiply by the number of days or months overdue.
This calculator handles the date and rate calculations for you automatically.
Always state your late payment policy on the original invoice. Something like: Interest of 1.5% per month will be charged on invoices not paid within 30 days of the due date.
Use the Tez Invoice free invoice generator to add payment terms and late fee clauses to your invoices.
When an invoice becomes overdue, send a payment reminder immediately. If it remains unpaid for a week or more, follow up with a formal notice that includes the original amount, overdue days, and calculated interest.
Being consistent and professional in overdue follow-up significantly improves your collection rate.
Tez Invoice is our free online invoice generator. No sign up. No watermark. Download clean PDF or JPEG invoices in seconds, right from your browser.
Common questions about Late Payment Calculator: Compute Interest on Overdue Invoices on Tez Invoice.
It calculates interest or penalty charges on an invoice not paid by its due date.
Multiply the overdue amount by the interest rate and by the number of days or months overdue.
1.5% per month or 18% per year is common. Check local regulations for any legal limits.
It is much harder to enforce. Always include your late payment policy on the original invoice.
Add it to the terms section. Use the Tez Invoice free Invoice Generator to create invoices with payment terms.
Yes. Free with no sign up.
Yes. Fully responsive.
No. In-browser only.
Yes.
Use the free Invoice Generator on Tez Invoice.