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.
A subcontractor waiting on money this size should know which clause the general contractor is standing behind. Pay when paid is usually read as a timing term: it gives the general a reasonable period to pay after the owner pays, and the money is still owed. Pay if paid tries to make the owner's payment a condition of the debt existing at all, which shifts the owner's credit risk onto you.
Courts treat the two very differently and several states refuse to enforce pay if paid at all, while others enforce it only when the wording is unmistakable. So the clause is worth reading before signing rather than after an invoice goes late, and it is worth negotiating: a cap on the delay, an exception where the general caused the non payment, or a straight deletion are all ordinary requests on a subcontract.
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 is about timing and the money is still owed. Pay if paid tries to make the owner's payment a condition of the debt existing, which moves the credit risk to you.
Is a pay if paid clause enforceable?
It depends on the state. Several refuse to enforce them, others enforce them only where the wording is explicit, so the clause is worth reading and negotiating before signing.
The late fee calculator takes any dimensions you like and hands back the same list.