Iowa Late Fee Calculator
Work out interest on an overdue B2B invoice under Iowa law. The legal default rate — what applies when the contract is silent — is 5%, and the statute is quoted verbatim below. All math runs locally in your browser.
Legal rate absent a written agreement; open accounts start 6 months after the last item. A separate variable rate governs once suit is filed.
Late fee breakdown
- Interest owed
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- Daily rate
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- Total (invoice + interest)
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Still unpaid? Generate a formal demand letter — it computes the interest and cites Iowa's statute (Iowa Code § 535.2) for you.
What Iowa law actually says
Except as provided in subsection 2, the rate of interest shall be five cents on the hundred by the year in the following cases, unless the parties shall agree in writing [...] The following persons may agree in writing to pay any rate of interest [...] (5) A person borrowing money or obtaining credit for business or agricultural purposes
Quoted verbatim from the linked official source — not our paraphrase. How we source and re-check every row is documented in the data methodology.
Maximum late fee in Iowa — written B2B contracts
No statutory cap
Business or agricultural credit is exempt: parties may agree in writing to any rate, with no usury defense or penalty. The floating cap binds only consumer deals.
Basis: Iowa Code § 535.2(2)(a)(5). Compare all 51 jurisdictions on the full state table and the cap-regime map.
B2B invoices only — not rent, not consumer debt
Everything on this page is about business-to-business invoices. Residential rent late fees live in Iowa's landlord-tenant law and consumer credit has separate, stricter rules — two different bodies of law. The distinction is explained in B2B invoice late fees vs. residential rent.
Use this data
Iowa's row — rate, cap, citation, verbatim quote, verification date — is part of our open 51-jurisdiction dataset: CSV · JSON (CC BY 4.0, cite myinvoicetemplate.com). Set late-fee terms on your next invoice with the free invoice generator, or state them clearly using the wording guidance in the payment terms guide.
Iowa late fee FAQ
Can I charge late fees on overdue invoices in Iowa?
Yes — on business-to-business invoices. If your contract or invoice states a late-fee rate, that rate governs (subject to the cap rules below). If nothing was agreed: 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. Statute: Iowa Code § 535.2, verified 2026-08-19. Consumer and rent debts follow separate laws.
What is the maximum late fee I can charge in Iowa?
For a written B2B contract: Floating cap for ordinary written agreements (10-yr Treasury monthly average +2 pts, set monthly by the Superintendent of Banking) — business credit is exempt. Basis: Iowa Code § 535.2(2)(a)(5). The full cap analysis is in the section above; this covers business-to-business deals only — consumer credit has stricter separate caps.
What interest applies if my contract doesn't mention late fees in Iowa?
The statutory default rate of 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. Statute: Iowa Code § 535.2 (verbatim quote on this page, verified 2026-08-19).
Does this cover rent, apartment, or consumer late fees in Iowa?
No. This page covers business-to-business invoices only. Residential rent late fees are governed by Iowa's landlord-tenant law, and consumer credit for personal, family, or household purposes has its own stricter caps and disclosure rules. Those are different statutes than the commercial-interest law cited here.
Where does this data come from, and when was it verified?
Every figure on this page comes from our 51-jurisdiction dataset: each row researched against the controlling statute or the state's official current-rate page, independently re-checked, and stamped with its own verification date — Iowa's row was last verified 2026-08-19. The operative legal text is quoted verbatim on this page with a link to the official source, the methodology is public, every verification pass is logged in the changelog, and the full dataset is downloadable (CC BY 4.0).
Not legal advice. This page summarizes Iowa's commercial-interest statute for general information, with the verification date shown above — it tells you when we last confirmed the figures, not that they are still current today. Statutes change and courts interpret them; verify the cited statute at the official source, or ask a licensed attorney in your state, before charging or demanding interest.