Calculate Late Fees
Enter your invoice details below. Results update instantly.
The original amount owed.
When payment was originally due.
Number of days past the due date.
How you charge late fees.
Typical range: 1-2% per month.
Late Fee Breakdown
Late Fee Amount
$75
Penalty charged
Total Amount Owed
$5,075
Invoice + late fee
Daily Penalty
$2.50
Per day overdue
Annualized Rate (APR)
18.0%
Equivalent annual rate
How we calculated this
Add late fees to your invoices automatically
Set your late fee policy once — InvoiceBloom applies it to every invoice.
How this calculator works
There are two ways to charge for a late invoice and the calculator handles both. A percentage fee is a monthly rate applied to the invoice amount and prorated by the days overdue: invoice × rate × (days overdue ÷ 30). A flat fee is a fixed amount added once, whatever the delay.
Worked example: a $5,000 invoice with a 1.5% monthly fee that is 30 days late owes $5,000 × 1.5% × 1 month, or $75, and accrues $2.50 for every further day. At 45 days late the fee is $112.50. A 1.5% monthly rate is an 18% annual rate, which is what the APR figure shows; the calculator also converts a flat fee to its APR equivalent so you can see what a $50 fee on a $5,000 invoice really costs the client (about 12% APR at 30 days).
The calculator uses a 30-day month for the proration, which is the convention on most invoices and contracts. It does not compound: interest is charged on the original invoice amount, not on the fee already accrued, because compounding late fees is prohibited or restricted in many jurisdictions and is rarely written into freelance contracts.
What it cannot tell you is whether your rate is legal where you and your client are. A late fee is only enforceable if the client agreed to it before the invoice was issued, and some US states cap the interest a business may charge. See how much late fee to charge for the common rates by industry and the wording to put on the invoice, and late payment interest rates by country for what the statute gives you in the UK, EU, US, Canada and elsewhere.
Common Late Fee Policies by Industry
How businesses in different industries typically handle late payments.
| Industry | Typical Fee | Grace Period | Common Terms |
|---|---|---|---|
| Construction | 1.5–2% / month | 10 days | Net 30 |
| Consulting | 1–1.5% / month | 15 days | Net 30 |
| Graphic Design | $25–50 flat or 1.5% | 7–14 days | Net 15–30 |
| Web Development | 1.5% / month | 10–15 days | Net 30 |
| Photography | $25–75 flat | 7 days | Due on receipt |
| Legal Services | 1–1.5% / month | 30 days | Net 30–60 |
Trusted by freelancers
Frequently Asked Questions
How do I calculate a late fee on an invoice?
Multiply the invoice amount by the late fee percentage, then multiply by the number of periods overdue. For example, a 1.5% monthly fee on a $5,000 invoice that's 2 months late = $5,000 × 0.015 × 2 = $150. Our calculator handles flat fees and percentage-based penalties automatically.
What's a typical late fee for freelancers?
Most freelancers charge 1-2% per month on overdue invoices. Some use flat fees like $25-50 for smaller invoices. The key is to clearly state your late fee policy on every invoice before sending it.
Are late fees on invoices legal?
Yes, in most jurisdictions you can charge late fees if they're disclosed in advance (on the invoice or in your contract). Some states cap the maximum rate — typically around 18-24% annually. Always check your local regulations.
When should I start charging late fees?
Most freelancers apply late fees after a grace period of 5-15 days past the due date. Common terms are Net 30 with fees starting on day 31. Clearly state the grace period and fee structure in your payment terms.
How do I add late fees to my invoices?
Include your late fee policy in your invoice payment terms (e.g., '1.5% monthly fee on balances over 30 days'). With InvoiceBloom, you can set automatic late fee policies that apply to all your invoices.
What's the difference between a flat fee and percentage-based late fee?
A flat fee (e.g., $25) is the same regardless of invoice size — simple but may be too low for large invoices. A percentage fee (e.g., 1.5%/month) scales with the invoice amount and is more common for professional services.
Related Tools & Guides
Get Paid On Time, Every Time
Create professional invoices with built-in late fee policies and payment tracking.
Start Free — Create InvoicesNo credit card required