Calculate the overdue balance before you decide what to send.
A useful late-fee calculation keeps the original invoice amount separate from any interest or charge you may be entitled to add. This tool is designed for estimating a clear next figure, not deciding whether a fee is legally enforceable.
How the calculator works
- Start with the due dateThe calculation counts days after the invoice due date, then removes any grace days you enter.
- Apply the annual rate as daily interestDaily interest is estimated from the invoice amount, annual rate and overdue days.
- Add an agreed flat fee only when appropriateUse a flat fee only when it is supported by your contract, terms or the rules that apply to the invoice.
- Review the updated balance before sending itUse the result as a working total, then check it against the invoice terms and any prior communication.
Should I charge interest on every late invoice?
Not necessarily. A short reminder is often the right first step. Charge interest or a late fee only where your agreement and the relevant rules support it.
What is the difference between a late fee and interest?
Interest grows with time and is based on a rate. A late fee is usually a fixed amount. Some invoice terms allow one, both or neither.
Can I use this calculator for any country?
The maths is general, but enforceability is not. Check the contract terms and local requirements before presenting a late fee to a client.