Late Fee on a $3,000 Invoice, 30 Days Overdue
Interest at 1.5% a month
$45.00
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 amount3000 $
- Late fee rate you wrote in the contract1.5 % per month
- Days past due30
- Flat fee, if your contract has one0 $
Now owed$3,045.00
| Original invoice | $3,000.00 |
|---|---|
| Days late | 30 (1 months) |
| Interest at 1.5% a month | $45.00 |
| Flat fee | $0.00 |
| Total now due | $3,045.00 |
| Annual rate this equals | 18% |
| Per day from here | $1.50 |
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 | $3,045.00 | $3,045.00 |
| 60 days | $3,090.00 | $3,090.00 |
| 90 days | $3,135.00 | $3,135.00 |
| 120 days | $3,180.00 | $3,180.00 |
What else matters here
Three thousand dollars at 1.5 percent a month earns $45 in 30 days, so $3,045 is due and it climbs $1.50 a day. At 60 days the interest is $90.
Compare that to the cost of simply taking a card. Three percent on $3,000 is $90, which is two months of interest, and the money arrives in two days instead of sixty. Processing fees look expensive next to nothing and cheap next to waiting, and the customer who pays instantly by card is the customer who would otherwise have paid in forty five days.
The practical version is a payment link on the invoice and an app on the phone for the truck. Some states and some card rules restrict adding a surcharge to recover the fee, and the rules differ for credit and debit, so either build the cost into the price or check what your processor and your state allow before adding a line for it.
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 $3,000 invoice at 30 days?
$45 at 1.5 percent a month, making $3,045 due and $1.50 a day after that.
Is accepting cards cheaper than waiting for payment?
Often. Three percent on $3,000 is $90, which is two months of late fee interest, and the money arrives in days rather than weeks.
Can I add a surcharge for card payments?
Sometimes. Card network rules and several state laws restrict surcharging, and the rules differ between credit and debit, so check with your processor and your state before printing it on an invoice.
The late fee calculator takes any dimensions you like and hands back the same list.