Stop Losing Money on Late Payments
Calculate exactly how much to charge for late payments. Protect your cash flow and get paid what you deserve with our professional late fee calculator.
Late Payment Fee Calculator
Enter your invoice details below to calculate late fees
Industry standard: 1.5% daily or 5% monthly
These buttons will set the due date based on your invoice date
📊 Your Results
Fee Breakdown
Fill in your invoice details to see the late fee calculation
Legal Tip for Freelancers
Protect your business with proper late payment terms
Always state your late payment terms clearly in your contract or invoice. Include the specific percentage rate, whether it's daily or monthly, and when late fees begin to accrue. This protects your right to collect late fees and sets clear expectations with your clients.
✅ Do This
- • Include late fees in your contract
- • Specify the exact percentage rate
- • State when fees begin to accrue
- • Apply fees consistently
❌ Avoid This
- • Adding fees without prior agreement
- • Using vague language about fees
- • Charging excessive rates
- • Inconsistent fee application
Master Your Cash Flow
Everything you need to know about late payment fees and protecting your freelance business
What are Late Payment Fees?
Late payment fees are charges applied to overdue invoices to compensate for the inconvenience and financial impact of delayed payments. For freelancers and small business owners, these fees help maintain cash flow and encourage timely payments from clients.
Why Charge Late Fees?
- • Maintain healthy cash flow for your business
- • Encourage clients to pay on time
- • Compensate for collection time and effort
- • Demonstrate professionalism
Common Payment Terms
Due on Receipt
Payment due immediately upon receiving the invoice. Used for rush jobs.
Net 15
Payment due within 15 days. Common for smaller projects or critical cash flow.
Net 30
Most common payment term for business-to-business transactions.
Net 60
Payment due within 60 days. Often used for larger projects.
Legal Considerations
Before implementing late fees, ensure you:
- • Include late fee terms in your contract or invoice
- • Check local and state laws regarding maximum allowable late fees
- • Clearly communicate payment terms before starting work
- • Apply late fees consistently across all clients
- • Keep detailed records of all invoices and payments
- • Consider offering early payment discounts as an alternative
Ready to Protect Your Business?
Take control of your cash flow with professional contracts, invoicing tools, and business resources designed for freelancers.
Contract Templates
Professional contracts with built-in late payment terms
InvoiceLight
Pay-as-you-go invoice builder with custom templates. Only $1 per sent invoice.
Essence CRM
Lightweight, modern CRM focused on contacts, notes, and reminders.