Late Fee on a $30,000 Invoice, 30 Days Overdue
Interest at 1.5% a month
$450.00
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 amount30000 $
- Late fee rate you wrote in the contract1.5 % per month
- Days past due30
- Flat fee, if your contract has one0 $
Now owed$30,450.00
| Original invoice | $30,000.00 |
|---|---|
| Days late | 30 (1 months) |
| Interest at 1.5% a month | $450.00 |
| Flat fee | $0.00 |
| Total now due | $30,450.00 |
| Annual rate this equals | 18% |
| Per day from here | $15.00 |
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 | $30,450.00 | $30,450.00 |
| 60 days | $30,900.00 | $30,900.00 |
| 90 days | $31,350.00 | $31,350.00 |
| 120 days | $31,800.00 | $31,800.00 |
What else matters here
Thirty thousand dollars 30 days late carries $450 of interest, a total of $30,450, and $15 a day. At 60 days it is $900.
Whether 1.5 percent a month is allowed depends heavily on who the customer is. The caps that bite hardest usually sit in consumer protection and home improvement statutes, so the rate you may charge a homeowner is often lower than the rate you may charge a general contractor or a commercial property owner, and some states also require specific disclosure wording on a consumer contract.
Which means one rate on one contract template is a risk if you work both sides of the market. Check the consumer rule in your state, set the residential contract at or below whatever it allows, and keep the commercial rate separate. An excessive rate can invalidate the whole fee clause rather than merely reducing it to the legal maximum, so the conservative number is usually the profitable one.
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 $30,000 invoice at 30 days?
$450 at 1.5 percent a month, making $30,450 due and $15 a day after that.
Can I charge a homeowner the same late fee as a business?
Often not. Consumer protection and home improvement statutes cap residential rates more tightly than commercial ones in many states, and some require specific disclosure wording.
Is 1.5 percent a month legal everywhere?
Not everywhere. One and a half percent a month is 18 percent a year and it is the common trade figure, but states cap this and several cap it below 18 for consumer work. A rate over the cap can void the entire fee clause rather than just the excess, so check your own state before printing it.
The late fee calculator takes any dimensions you like and hands back the same list.