Invoice late fee calculator
LATE FEE CALCULATION
Original invoice: $0.00
Late fee applied: $40.00
New total due: $40.00
📋 INVOICE WORDING (copy-paste ready)
A late payment fee of USD40.00 has been applied to this invoice, which was due 0 days ago. New total due: USD40.00.
Add fee terms once, then automate reminders so clients act before extra charges stack up.
Start freeHow to calculate a late fee on an invoice
Fixed fee is simple and predictable. Monthly percentage scales better for larger invoices. UK statutory interest can be legally enforceable for B2B invoices under the Late Payment Act.
What late fee rate is standard
- US: no federal statutory rate; 1–2% monthly is common (state law applies).
- UK: Bank of England base rate + 8% statutory for qualifying B2B debts.
- EU: Late Payment Directive sets 8% above ECB reference for B2B.
- Australia: penalty interest often defined by state-level frameworks.
Does charging a late fee damage client relationships?
It can if it is a surprise. If agreed up front in clear payment terms, it is usually treated as professional policy rather than personal conflict.
Set terms first with the Payment Terms Generator, then estimate exposure in the Late Payment Cost Calculator.
External references
- UK Late Payment of Commercial Debts Act 1998
- EU Late Payment Directive 2011/7/EU
- US SBA: Getting paid on time resources
Written by Pasko Djonovic, Founder at ChaseAI • Last updated May 6, 2026
