Is the late fee simple or compounding if the invoice stays unpaid for months?

The formula prorates linearly (rate × days late ÷ 30) rather than compounding month over month, so it's simple interest on the original invoice amount, not a compounding penalty that grows on top of previously accrued fees.

Can I charge a late fee rate different from what's in my contract?

This calculator uses whatever monthly rate you enter, but the rate you actually charge should match what's specified in your invoice terms or contract — many jurisdictions cap the maximum interest or late fee rate you can legally charge without a written agreement.

Invoice Late-Fee Calculator

Calculate the late fee owed on an overdue invoice.

How this is calculated

Late fee = invoice amount × monthly rate × (days late ÷ 30)

Assumptions used in this calculation

Proration: Prorates the monthly rate by days late rather than charging a flat fee per partial month, some contracts may specify a flat per-month fee instead.

About this calculator

Calculates the late fee owed on an overdue invoice, prorated daily from a monthly late-fee rate.

Worked example

₹50,000 invoice, 1.5%/month, 45 days late

Result: Late fee = ₹1,125

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Invoice Late-Fee Calculator

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Frequently asked questions

Is the late fee simple or compounding if the invoice stays unpaid for months?

Can I charge a late fee rate different from what's in my contract?

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