Late payment cost calculator
An invoice paid late is an interest-free loan from you to your customer. Enter what is overdue and for how long, and see what waiting costs you and what your late-payment terms would recover. Everything runs in your browser. Nothing you type is sent to us, and nothing is stored.
- Free, no sign-up
- About 2 minutes
- Nothing leaves your browser
Late payment cost calculator
How to use it.
- 1
What is overdue
The total of your unpaid invoices past their due date, and how late they are on average.
- 2
What money costs you
The yearly rate on your overdraft, credit line or card: the price of covering the gap.
- 3
Your late-payment terms
A flat fee, a monthly interest rate, or both, as your terms state them.
The arithmetic, in full.
No black box. This is exactly what the tool calculates, so you can check it by hand.
- Cost of waiting = amount overdue x yearly borrowing rate x days late / 365
- Each day late costs = amount overdue x yearly borrowing rate / 365
- Late interest you could charge = amount overdue x monthly late rate x days late / 30
- Late fee = flat fee + late interest
A worked example
$12,000 overdue by an average of 35 days, with borrowing at 12% a year, costs you $138.08 while you wait. A 1.5% monthly late charge over the same 35 days comes to $210.
Common questions.
Can I charge a late fee?
Usually, if your terms say so before the work starts and the fee is reasonable. The rules differ from country to country, so state your late-payment terms on every quote and invoice, and check what applies where you trade.
What payment terms work best?
Short and clear ones, agreed up front. A due date stated on the quote, a deposit for larger work and an easy way to pay online all shorten the wait.
How does grewray help with late payments?
Every invoice carries a Pay now link, and reminders go out before and after the due date until it is paid, so nobody has to chase by hand.
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