Late Fee on a $100,000 Invoice, 30 Days Overdue
Interest at 1.5% a month
$1,500.00
1.5% a month, simple interest charged pro rata by day, with no flat fee added.
How that number is worked out
These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.
- Unpaid invoice amount100000 $
- Late fee rate you wrote in the contract1.5 % per month
- Days past due30
- Flat fee, if your contract has one0 $
Now owed$101,500.00
| Original invoice | $100,000.00 |
|---|---|
| Days late | 30 (1 months) |
| Interest at 1.5% a month | $1,500.00 |
| Flat fee | $0.00 |
| Total now due | $101,500.00 |
| Annual rate this equals | 18% |
| Per day from here | $50.00 |
Days past due compared
Interest is simple and pro rata by day, so it climbs in a straight line rather than accelerating.
| Days past due | Now owed | Total now due |
|---|---|---|
| 30 days | $101,500.00 | $101,500.00 |
| 60 days | $103,000.00 | $103,000.00 |
| 90 days | $104,500.00 | $104,500.00 |
| 120 days | $106,000.00 | $106,000.00 |
What else matters here
One hundred thousand dollars at 1.5 percent a month is $1,500 in 30 days, $101,500 due, and $50 a day. At 60 days the interest is $3,000.
Pay if paid is about condition. It says the general's obligation to pay the sub arises only if the owner pays the general. Payment by the owner becomes a condition precedent.
Several states refuse to enforce pay if paid clauses at all, and most of the rest demand that the transfer of risk be stated in explicit and unmistakable words rather than inferred. That is useful to know and it is not a reason to sign one, because litigating the enforceability of a clause is far more expensive than negotiating it out before work starts.
What this calculator assumes
- A late fee is only collectable if it was in the contract or on the invoice before the invoice went late. A fee that first appears in a reminder email is not enforceable anywhere.
- 1.5 percent a month is 18 percent a year and is the common trade figure, but states cap this. Several cap it below 18 for consumer work, and a rate over the cap can void the whole fee clause, not just the excess.
- Interest here is simple, charged pro rata by day. Compounding monthly is legal in some states and not others, so the simple figure is the safe one to put on paper.
Questions people ask
What is the late fee on a $100,000 invoice at 30 days?
$1,500 at 1.5 percent a month, making $101,500 due and $50 a day after that.
What is the difference between pay when paid and pay if paid?
Pay when paid sets the timing of payment and leaves the risk of an owner default with the general contractor. Pay if paid makes the owner's payment a condition of the sub being owed anything at all, which moves that risk onto the sub.
Is a pay if paid clause enforceable?
Several states refuse to enforce pay if paid clauses, and most require the risk transfer to be stated in unmistakable words.
The late fee calculator takes any dimensions you like and hands back the same list.