Invoice Late Fee Calculator

Calculate legal, APR-based late fees on overdue invoices. All math runs locally — no data leaves your browser.

Common: 12–18% APR (1–1.5% per month). Check your state usury cap.

How to use this calculator

  1. Enter the original invoice amount (principal).
  2. Enter the annual late fee rate you disclosed on your invoice (APR). If you use a monthly rate, multiply it by 12.
  3. Enter the number of days past the due date.
  4. Choose simple (default) or compound daily interest.

Legal note: Always verify your state or country usury laws before charging. Many US states cap commercial interest at 10–18% APR. In the UK, the statutory rate is 8% plus the Bank of England base rate.

Formula

Simple interest: fee = principal × (APR ÷ 365) × days

Compound daily: fee = principal × ((1 + APR÷365)^days − 1)

Late Payment Interest Rates by State (2026)

Two numbers matter when a US invoice goes unpaid. The legal (default) rate is what state law supplies when your contract or invoice never mentioned interest. The maximum written rate is the ceiling — if any — that two businesses may agree to in writing. In most states a written B2B contract can charge far more than the default, which is why stating a late-fee clause on every invoice matters.

The table covers all 50 states and the District of Columbia, with a link to the controlling statute for each row. Rates marked Variable are reset by a state officer or formula — follow the linked current-rate page for the live figure instead of relying on a printed number. Every row has its own anchor, so you can link straight to one state — for example #texas or #new-york.

Can a written B2B contract charge any late-fee rate? — all 50 states + DC

Each square is a state, colored by what a written business-to-business contract may charge in late-fee interest. It is a visual read of the max-written-rate column below — select a state to jump to its exact cap and the controlling statute.

  • No statutory cap — any written rate is lawful (26)
  • Conditional — capped, but exemptions usually apply (12)
  • Hard cap — a firm statutory ceiling (13)

Color shows the written-contract regime (the max-written column), not the legal default rate. Full detail — default rate, exact cap, and statute citation — is in the table below.

Late payment interest by US state: the default rate when the contract is silent, and the maximum rate a written B2B contract may charge, with statute citations
State If the contract is silent Max written B2B rate Statute
Alabama 6% Default when there is no written rate; runs from the day payment was due. 8% written-contract cap — but any agreed rate is allowed when the deal is $2,000 or more (covers most B2B invoices). Ala. Code §§ 8-8-1, 8-8-5
Alaska 10.5% Statutory legal rate on money after it is due when no written rate is set. Greater of 10% or Fed 12th District rate +5 pts — but contracts over $25,000 are exempt (any agreed rate). AS 45.45.010
Arizona 10% Legal rate when no rate is agreed in writing. No cap — any rate agreed in writing is lawful. A.R.S. §§ 44-1201, 44-1202
Arkansas 6% Default when the contract is silent; in litigation, court-awarded interest follows the contract rate or Fed primary credit rate +2%, whichever is greater. 17% per year — constitutional cap (amend. 89, § 3); no business exemption. Usurious contracts are void as to principal and interest. Ark. Const. amend. 89; Ark. Code Ann. § 4-57-101(d)
California 10% Default on contract debts after breach when the contract is silent; runs from the date a fixed sum became due. Usury law reaches only loans/forbearance — not bona fide trade-credit terms. For true business loans: higher of 10% or FRBSF discount rate +5 pts, with broad exemptions (e.g. $300,000+ entity credit, licensed lenders). Cal. Civ. Code § 3289(b); Cal. Const. art. XV, § 1
Colorado 8% Compounded annually; runs from when the money became due on instruments, settled accounts, and money due on account. Up to 45% per year may be stipulated in writing — the cap applies to business deals too. C.R.S. §§ 5-12-101 to -103
Connecticut 10% Court-awarded (discretionary) on money wrongfully withheld, from when it became payable; the classic legal rate for loans is 8%. 12% general cap — but commercial loans are largely exempt under § 37-9 tiers (e.g. $10k–$250k: deposit index +17%). Conn. Gen. Stat. §§ 37-3a, 37-4, 37-9
Delaware Variable — 8.75% (since 12/11/2025) Fed discount rate +5 pts, fixed as of when interest became due; simple interest on invoice debts. Written cap floats at the same discount +5 pts formula — but loans over $100,000 are uncapped, and business entities cannot plead usury at all. 6 Del. C. §§ 2301, 2306
District of Columbia 6% Default absent an expressed rate; on liquidated debts interest runs from the due date. 24% written cap — but business-purpose loans over $2,500 are fully exempt (any agreed rate). D.C. Code §§ 28-3301, 28-3302, 15-108
Florida Variable — 8.25% (Q2 2026) Set quarterly by the state CFO (NY Fed discount 12-month average +400 bps); applies when the contract is silent. 18% for obligations of $500,000 or less; above $500,000 the bound is the 25% criminal-usury line. No general business exemption. Fla. Stat. §§ 687.01, 55.03, 687.02–.03
Georgia 7% Legal rate on liquidated demands when no written rate; on commercial accounts a creditor may charge up to 1.5%/month (18%/yr) on amounts 30+ days past due even without a written rate. $3,000 or less: 16% cap. Above $3,000: any rate agreed in a written contract. O.C.G.A. §§ 7-4-2, 7-4-16
Hawaii 10% Legal rate when there is no express written contract fixing a different rate. No cap for non-consumer transactions — any rate may be stipulated by written contract. HRS §§ 478-2, 478-4(c)
Idaho 12% Legal rate absent a written rate; fixed-sum invoices accrue from the due date; open accounts start 3 months after the last item. No cap — the finance-charge rate is whatever the parties agree (Idaho Credit Code consumer rules don't reach business credit). Idaho Code §§ 28-22-104, 28-42-201
Illinois 5% Statutory legal rate on written instruments and money wrongfully withheld when no rate is agreed. 9% nominal written-contract ceiling — but business/commercial credit is broadly exempt (any agreed rate). 815 ILCS 205/2, 205/4
Indiana 8% Legal rate on overdue contract debts when the contract specifies no rate. No general civil cap for written B2B contracts — consumer-credit caps don't apply to business-purpose debts. Ind. Code §§ 24-4.6-1-102, -103
Iowa 5% Legal rate absent a written agreement; open accounts start 6 months after the last item. A separate variable rate governs once suit is filed. Floating cap for ordinary written agreements (10-yr Treasury monthly average +2 pts, set monthly by the Superintendent of Banking) — business credit is exempt. Iowa Code § 535.2
Kansas 10% Legal rate for money after it becomes due when no other rate is agreed; no waiting period or demand requirement. 15% written cap — but business and agricultural transactions are exempt (any agreed rate). K.S.A. 16-201, 16-207
Kentucky 8% Legal rate, recoverable after default until judgment when the contract names no rate. Principal of $15,000 or less: lesser of Fed 90-day commercial-paper discount +4 pts or 19%. Over $15,000: any agreed rate. KRS 360.010
Louisiana Variable — 7.50% (2026) Judicial interest, reset each calendar year by the Commissioner of Financial Institutions (Fed discount rate on first business day of October +3.25 pts); runs from the time the sum was due. 12% maximum conventional rate fixed in writing — but commercial/business obligations are exempt. La. R.S. 9:3500, 13:4202; Civ. Code art. 2000
Maine Variable — see Fed H.15 for current T-bill When the contract is silent: 1-year U.S. Treasury bill rate +3 pts (prejudgment; T-bill +6 pts after judgment). Check the current 1-yr T-bill weekly average on the Fed H.15 release. No general cap for business/commercial credit — Maine's Consumer Credit Code excludes business-purpose extensions of credit. 14 M.R.S. §§ 1602-B, 1602-C; 9-A M.R.S. § 1-202(1)
Maryland 6% Constitutional legal rate; recoverable as of right on liquidated sums from the date payment was due. 8% with a signed written agreement — but loans to corporations and commercial loans over $15,000 (unsecured by a residence) or $75,000 (secured) carry any agreed rate. Md. Const. art. III, § 57; Com. Law §§ 12-102, 12-103
Massachusetts 12% Court-added prejudgment rate in contract actions, from the date of breach or demand; the general legal rate outside litigation is 6%. 20% criminal-usury ceiling (all-in, including fees) unless the lender notifies the Attorney General; no blanket business exemption. MGL c.231 § 6C; c.107 § 3; c.271 § 49
Michigan No automatic rate — current judgment rate If the contract is silent, no contractual interest accrues before suit; once a complaint is filed, the judgment-interest formula applies (5-yr Treasury auction average +1 pt, reset semi-annually, compounded annually). 7% nominal cap — but corporations and business entities may agree in writing to any rate (usury defense barred); outer criminal line is 25%. MCL 438.31, 438.61, 450.1275; MCL 600.6013
Minnesota 6% Legal rate when no rate is contracted in writing. Once a claim/suit is noticed, a separate court-set rate applies (2026: 4% up to $50,000; 10% above). 8% general cap — but written credit of $100,000+ is uncapped, and smaller business loans may charge Fed 90-day commercial-paper discount +4.5 pts. Minn. Stat. §§ 334.01, 334.011; § 549.09
Mississippi 8% Legal rate on notes, accounts and contracts when no rate is agreed. Any rate agreed in writing when the principal exceeds $2,000. Otherwise tiered caps: greater of 10% or Fed discount +5 pts (general); greater of 15% or discount +5 pts for business entities on deals over $2,500. Miss. Code Ann. § 75-17-1
Missouri 9% On written contracts, from the due date; on open accounts, after the debt is due AND payment has been demanded. 10% cap (or the state-published market rate if higher — Q2 2026 market rate is 7.68%, so 10% governs). Exempt: loans to corporations/partnerships/LLCs (any amount) and business loans of $5,000+ — any agreed rate. RSMo 408.020, 408.030, 408.035
Montana 10% Legal rate after the money becomes due (instruments, accounts stated, settled accounts) when no written rate is fixed. Greater of 15% or Fed H.15 prime +6 pts (dated 3 business days before signing) — prime +6 is currently below the 15% floor, so 15% governs. MCA 31-1-106, 31-1-107
Nebraska 12% On written instruments and settled accounts; on unsettled accounts each charge bears interest from the billing date unless paid within 30 days. 16% general cap — but exempt: entity borrowers, business/agricultural-purpose loans, and deals at or above $25,000 (rising to $100,000 on July 18, 2026) — any agreed rate. Neb. Rev. Stat. §§ 45-104, 45-101.03, 45-101.04
Nevada Variable — 8.75% (Jan–Jun 2026) Prime rate at Nevada's largest bank +2 pts, fixed semi-annually (Jan 1 / Jul 1) for money from the time it becomes due. No cap — any rate agreed in writing is lawful. NRS 99.040, 99.050
New Hampshire Variable — 5.7% (2026) Rate recovered in litigation (pre- and post-judgment): 26-week T-bill discount rate +2 pts, set annually by the State Treasurer. A fixed 10% residual default applies to business transactions outside that context. No cap for business transactions agreed in writing (consumer credit is the only carve-out). RSA 336:1
New Jersey Variable — 4.5% / 6.5% (2026) Court-awarded prejudgment interest at the Court Rule 4:42-11 rate (NJ Cash Management Fund average; +2 pts on amounts over $20,000), set annually. 16% written civil cap on paper — but corporate borrowers cannot plead usury and deals of $50,000+ are exempt; criminal ceiling 50% (entities) / 30% (individuals). N.J. Ct. R. 4:42-11; N.J.S.A. 31:1-1, 31:1-6; 2C:21-19
New Mexico Up to 15% When no written rate is fixed; courts typically award the full 15% on matured sums from the day the balance is ascertained. No cap when the debtor is a business entity (express statutory exclusion); the general 36% credit cap applies otherwise. NMSA 1978 §§ 56-8-3, 56-8-9
New York 9% Statutory prejudgment rate on contract debts (simple), from the earliest date the claim existed. The 2% consumer-debt rate does not apply to B2B. 16% civil / 25% criminal usury caps — loans of $250,000+ escape the civil cap, $2.5M+ escape both; corporations cannot plead civil usury (effective ceiling ≈25%). CPLR 5004; GOL 5-501; Penal Law 190.40
North Carolina 8% Legal rate; on contract claims the awarded amount bears interest from the date of breach. None for business borrowers/purposes or $300,000+ loans (§ 24-9), and any rate over $25,000 principal; small non-business loans: greater of 16% or T-bill +6 pts (monthly). N.C.G.S. §§ 24-1, 24-5, 24-1.1, 24-9
North Dakota 6% Legal rate for any legal indebtedness unless a different written rate (continues after maturity). Floating cap: 6-month T-bill average +5.5 pts, published monthly by the banking commissioner (June 2026: 9.059%; floor 7%); most genuine business transactions are exempt. N.D.C.C. 47-14-05, 47-14-09
Ohio Variable — 7% (2026) Set annually by the Tax Commissioner (federal short-term rate rounded +3 pts); runs from when the money became due and payable. 8% written cap — lifted for any "business loan" (no dollar floor) and for principal over $100,000: any agreed rate. ORC 1343.03, 5703.47, 1343.01
Oklahoma 6% Legal rate absent a contract rate; liquidated sums earn interest from the day the right to recover vested. 10% constitutional ceiling as the residual rule; statutes authorize higher rates for various licensed/consumer lending regimes. 15 O.S. § 266; Okla. Const. art. XIV, § 2
Oregon 9% Legal rate on moneys after they become due; open accounts bear interest from the date of the last item. No cap on trade credit/invoices — the usury cap reaches only money loans of $50,000 or less; larger loans are uncapped. ORS 82.010
Pennsylvania 6% Legal rate; on a fixed-sum debt it runs as of right from the date payment was due. 6% cap applies only to loans of $50,000 or less — business loans of any amount are exempt (any agreed rate). 41 P.S. §§ 201, 202
Rhode Island 12% Statutory legal rate when no rate is agreed. Greater of 21% or the domestic prime rate +9 pts — and this cap applies to ordinary B2B deals too (no business exemption). R.I. Gen. Laws §§ 6-26-1, 6-26-2
South Carolina 8.75% Legal rate on ascertained sums due when no rate is agreed (post-judgment rate is separate: prime +4 pts, 10.75% for 2026). No cap on written non-consumer contracts — parties may agree to any rate. S.C. Code Ann. §§ 34-31-20, 37-10-106
South Dakota 15% Category F default rate when no written rate is fixed, from the day the balance is due/ascertained. No cap — any rate set by written agreement between businesses or persons is lawful. SDCL 54-3-5, 54-3-16, 54-3-1.1
Tennessee 10% Maximum effective default for uncontracted transactions; courts award prejudgment interest in equity at up to 10%. Formula rate: lesser of Fed prime +4 pts or 24%, announced weekly by the TN Dept. of Financial Institutions (June 9, 2026: 10.75%). Tenn. Code Ann. §§ 47-14-102, -103, -123
Texas 6% Begins accruing on the 30th day after the amount is due when the contract specifies no rate. Weekly ceiling (26-week T-bill ×2), floor 18% / cap 24% — 28% for business credit; "exempt commercial loans" ($500,000+ unsecured / $7M+ realty-secured) carry any agreed rate. Tex. Fin. Code §§ 302.002, 303.009, 306.1015
Utah 10% Legal rate for contracts (including services and breach claims) unless the parties specify otherwise. No cap — parties to a lawful contract may agree on any rate. Utah Code § 15-1-1
Vermont 12% Legal rate; awarded as of right on liquidated sums from the date the debt became due. 12% general cap — but corporate obligations and business/income-producing financing are exempt (any agreed rate). 9 V.S.A. §§ 41a, 46
Virginia 6% On open accounts with no written credit agreement, interest accrues AUTOMATICALLY from day 61 after the invoice/billing statement is presented and unpaid — no demand needed. 12% general cap — but business/investment loans of $5,000+ are exempt (any agreed rate). Va. Code §§ 6.2-301, 6.2-303, 6.2-317
Washington 12% Legal rate where no different rate is agreed in writing; applied as prejudgment interest on liquidated claims. Floating cap: higher of 12% or 26-week T-bill average +4 pts — business transactions are exempt (any agreed rate). RCW 19.52.010, 19.52.020
West Virginia 6% Legal rate absent a written rate; once litigated, a court-set variable rate applies (2026: 6.25%; floor 4% / cap 9%). 8% written cap — but business-purpose debts are exempt (entities: any amount; individuals: $20,000+). W. Va. Code §§ 47-6-5, 47-6-11
Wisconsin 5% Legal rate when the contract is silent; runs from the contractual due date (or from demand/suit if no time is set). 12% general cap — but loans to corporations/LLCs and deals of $150,000+ are exempt; effectively no ceiling on written B2B contracts. Wis. Stat. §§ 138.04, 138.05
Wyoming 7% Statutory default when no rate is agreed in writing. No cap for business credit — Wyoming's rate caps live in its consumer-credit code and don't reach commercial transactions. Wyo. Stat. § 40-14-106

Last reviewed: June 12, 2026. Every row was checked against the cited statute or the state's official current-rate page. How we verify this data →

Not legal advice. This table is a general reference for B2B (business-to-business) invoices — consumer credit is governed by separate, stricter rules in every state. Statutes change and courts apply them to specific facts. Verify against the linked official source, or ask a licensed attorney in your state, before charging or disputing a late fee.

Which States Cost the Most When an Invoice Goes Unpaid (2026)

The table above is an alphabetical lookup. This one answers a different question: if you did nothing — no late-fee clause on the invoice, no written rate — and a court applied your state's legal default rate, how much interest would pile up? States are ranked by the dollars owed on one worked example, highest first, so you can see where an unpaid invoice is most (and least) expensive. This ranks the statutory default (the "contract is silent" column), not the maximum a written contract may charge.

Worked example: a $10,000 B2B invoice paid 90 days late, simple interest at the state default rate. Re-derive any row yourself: owed = $10,000 × (rate ÷ 365) × 90. This is the same simple-interest formula used by the calculator at the top of this page.

US states ranked by the statutory default interest owed on a $10,000 B2B invoice paid 90 days late, highest cost first
Rank State Default rate applied Interest owed on the example
1 New Mexico Up to 15% $369.86
2 South Dakota 15% $369.86
3 Idaho 12% $295.89
4 Massachusetts 12% $295.89
5 Nebraska 12% $295.89
6 Rhode Island 12% $295.89
7 Vermont 12% $295.89
8 Washington 12% $295.89
9 Alaska 10.5% $258.90
10 Arizona 10% $246.58
11 California 10% $246.58
12 Connecticut 10% $246.58
13 Hawaii 10% $246.58
14 Kansas 10% $246.58
15 Montana 10% $246.58
16 Tennessee 10% $246.58
17 Utah 10% $246.58
18 Missouri 9% $221.92
19 New York 9% $221.92
20 Oregon 9% $221.92
21 South Carolina 8.75% $215.75
22 Colorado 8% $197.26
23 Indiana 8% $197.26
24 Kentucky 8% $197.26
25 Mississippi 8% $197.26
26 North Carolina 8% $197.26
27 Georgia 7% $172.60
28 Wyoming 7% $172.60
29 Alabama 6% $147.95
30 Arkansas 6% $147.95
31 District of Columbia 6% $147.95
32 Maryland 6% $147.95
33 Minnesota 6% $147.95
34 North Dakota 6% $147.95
35 Oklahoma 6% $147.95
36 Pennsylvania 6% $147.95
37 Texas 6% $147.95
38 Virginia 6% $147.95
39 West Virginia 6% $147.95
40 Illinois 5% $123.29
41 Iowa 5% $123.29
42 Wisconsin 5% $123.29

Ranking covers the 42 states with a fixed statutory default. The 9 states below set their default by a formula or an officer's periodic order, so there is no single printed number to rank — follow each link for the live figure and enter it in the calculator.

Variable / formula-set states (not ranked)

Last reviewed: June 12, 2026. Every figure is computed at build time from the statutory default rate in the table above — see each state's row and cited statute.

Cite this data. Derived from the on-page state late-payment table (legal default rates, B2B). Last reviewed: June 12, 2026. Licensed CC BY 4.0. Copy-ready citation:

MyInvoiceTemplate, US State Late-Payment Interest Rates (2026), myinvoicetemplate.com/tools/late-fee-calculator/#ranked

Download the dataset

Both reference tables on this page are available as open data, regenerated from the verified source at every build.

State late-payment interest (51 jurisdictions): CSV · JSON

VAT / GST standard rates by country: CSV · JSON

Cite this dataset. MyInvoiceTemplate, US State Late-Payment Interest Rates (2026). Last verified June 12, 2026. Licensed CC BY 4.0. Copy-ready citation:

MyInvoiceTemplate, US State Late-Payment Interest Rates (2026), CC BY 4.0, myinvoicetemplate.com/data/late-payment-interest-by-state-2026.json (verified 2026-06-12)

Not legal advice. The ranking is a transparent arithmetic illustration of B2B (business-to-business) statutory default rates — consumer credit follows separate, stricter rules in every state. Statutes change and courts apply them to specific facts. Verify against the linked official source, or ask a licensed attorney in your state, before charging or disputing a late fee.

Late Fee FAQ

How is invoice late fee calculated?

Multiply the overdue balance by the daily interest rate, then multiply by the number of days overdue. Daily rate equals annual rate divided by 365. Example: $1,000 at 18% APR overdue 45 days = 1000 × (0.18/365) × 45 = $22.19.

What is a reasonable late fee for invoices?

Common practice in the US is 1.5% per month (18% APR) on overdue balances, matching the UCC maximum in many states. In the UK, statutory interest is 8% plus the Bank of England base rate under the Late Payment of Commercial Debts Act. Always verify against local usury caps.

Can I charge late fees without a written contract?

Enforceability varies by jurisdiction. Best practice is to disclose late fees on the invoice itself and in any engagement agreement before services begin. Without clear disclosure, courts may refuse to enforce the fee.

Are late fees tax deductible as business expense?

Late fees paid by your business are generally deductible as ordinary business expense. Late fees you charge clients are ordinary income. Consult a tax professional for jurisdiction-specific guidance.

What interest rate applies if my contract doesn't mention late fees?

Your state's legal (default) rate applies — see the state-by-state table on this page. Examples: New York 9%, California 10%, Texas 6% starting 30 days after the due date, Virginia 6% starting automatically 61 days after an unpaid invoice. In a few states the default is variable and reset periodically (e.g. Florida, Ohio, Louisiana).

What is the maximum late fee allowed by state law?

There is no single nationwide maximum. Most states let two businesses agree to any rate in a written contract, or exempt business deals above a dollar threshold, while some keep hard caps — for example Arkansas's constitutional 17% limit or Colorado's 45% ceiling. Check the max-written-rate column and the cited statute for your state in the table on this page.

Do these state interest rules apply to consumer invoices?

No. The reference table on this page covers B2B (business-to-business) invoices. Credit extended to consumers for personal, family, or household purposes is governed by separate consumer-credit laws with stricter caps and disclosure rules in every state.

Does this calculator store my invoice data?

No. All calculations run locally in your browser using JavaScript. No amounts, dates, or client details are transmitted to any server or stored anywhere.