Late fee calculator
Enter the invoice amount and how late it is. You get the fee, the new total, and the policy line to put on your invoices.
1% to 1.5% a month is common.
Days after the due date before any fee.
Charged for each 30 days, or part of 30 days, past the grace period, on the original amount only. Late fee limits differ by state and country, so check yours before you charge one.
Your late fee policy line
Payments received after the due date incur a late fee of 1.5% of the unpaid invoice amount for each month, or part of a month, it remains unpaid.
How the fee is worked out
For a percentage fee, the math is the unpaid amount times the monthly rate times the months late. Each 30 days, or part of 30 days, past the grace period counts as a month. The fee is charged on the original amount only, never on earlier fees. A flat fee is charged once.
Example: a $2,400 invoice at 1.5% a month, paid 45 days late with no grace period, counts as two months. The fee is $72 and the new total is $2,472.
What rate is normal
Many small businesses charge 1% to 1.5% a month, or a flat fee like $25. That monthly rate works out to 12% to 18% a year. Limits depend on where you and your client are, so check the rules before you set a rate.
The rule that makes a late fee work
A late fee only holds up if the client agreed to it before the work started. Put the policy line from the calculator on your quote, your contract and every invoice. A fee that first appears on a past-due notice is hard to collect and reads as spite. The invoice late fee policy guide has a full policy to copy and the email to send when you add a fee.
Let Ody keep track of late invoices
Ody watches every due date, sends polite reminders on the schedule you approve, and uses the late fee wording you agreed with the client. You text it, and nothing goes out without your OK.
Questions
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Get it out of your head
Text Ody what is piling up. The invoices, emails, and reminders get handled from there.