Late Fee on a $5,000 Invoice, 30 Days Overdue
Interest at 1.5% a month
$75.00
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 amount5000 $
- Late fee rate you wrote in the contract1.5 % per month
- Days past due30
- Flat fee, if your contract has one0 $
Now owed$5,075.00
| Original invoice | $5,000.00 |
|---|---|
| Days late | 30 (1 months) |
| Interest at 1.5% a month | $75.00 |
| Flat fee | $0.00 |
| Total now due | $5,075.00 |
| Annual rate this equals | 18% |
| Per day from here | $2.50 |
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 | $5,075.00 | $5,075.00 |
| 60 days | $5,150.00 | $5,150.00 |
| 90 days | $5,225.00 | $5,225.00 |
| 120 days | $5,300.00 | $5,300.00 |
What else matters here
Five thousand dollars, 30 days late, is $75 of interest and a total of $5,075. From here it adds $2.50 a day.
The comparison table below is the one to put in front of a slow payer. At 120 days the same invoice carries $300 of interest. Seeing where the number goes is more persuasive than the number it is at today.
One and a half percent a month is 18 percent a year, which is above most credit lines. That is the honest framing for a customer who asks why the rate is what it is: the money they are holding is money you are borrowing, and you are not borrowing it more cheaply than they could.
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 $5,000 invoice at 30 days?
$75 at 1.5 percent a month, making $5,075 due in total.
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.
Is this simple interest or compound?
Simple, charged pro rata by day. Compounding monthly is legal in some states and not in others, so the simple figure is the safe one to put on paper and the one this calculator uses.
The late fee calculator takes any dimensions you like and hands back the same list.