Iowa Late Fee Calculator

By rent most a lease may charge as a late fee
Rent limit
monthly rent of $700 or less: $12 per day, capped at $60 in total; above $700: $20 per day, capped at $100 in total
Earliest fee day
Not set by this rule
Statute
Iowa Code § 562A.9(4)
Checked
What was not paid on time. Copies the rent until you type here.
How the lease sets the late fee
Pre-filled with the Iowa limit; type the figure from your lease.
The total the lease lets the daily fee reach. Blank = no total.
How many days the lease gives before a late fee; 0 if none.

Your late fee

$100.00

At the legal limit

Paid 12 days late; the lease has no grace period.

The lease asks for $100.00, exactly the most Iowa Code § 562A.9(4) permits on these figures.

Days past due
12 days
Grace period ends
No grace period
Earliest fee date
October 20, 2026
Lease late fee
$20.00/day × 12 days, at most $100.00 = $100.00
Legal maximum
$100.00
Rent + late fee
$1,350.00

Limit set by Iowa (monthly rent of $700 or less: $12 per day, capped at $60 in total; above $700: $20 per day, capped at $100 in total): $100.00 for 12 days

rent > $700: $20.00/day × 12 days = $240.00 (cap $100.00)

Iowa names no earliest day for a late fee in the quoted law; the earliest fee date above follows the lease's grace days.

Late rent notice builder

Who it is from and to
Amounts
Taken from the calculator. Set 0 if the rent itself is paid.
Taken from the result; you may change it.
Adds the two above until you type your own figure.
Blank: the letter asks for payment at the earliest opportunity.
Payment and contact
Where and how the tenant can pay.
Late rent notice

[Your name or company]

Date: October 31, 2026

To: [Tenant name]

[Rental property address]

Re: Overdue rent for [Rental property address]

Dear [Tenant name],

This letter is a reminder that the rent of $1,250.00 for [Rental property address] was due on October 19, 2026. As of October 31, 2026, $1,250.00 of it is still unpaid (12 days past due).

Your lease provides for a late charge, which comes to $100.00.

Amount now due

Unpaid rent
$1,250.00
Late charge
$100.00
Total
$1,350.00

Please pay $1,350.00 at your earliest opportunity.

If this letter crossed with your payment, please disregard it.

Regards,

[Your name or company]

5% legal default rate (contract silent)
Max written B2B rate
Floating cap for ordinary written agreements (10-yr Treasury monthly average +2 pts, set monthly by the Superintendent of Banking) — business credit is exempt.
Cap regime
No statutory cap
Statute
Iowa Code § 535.2
Verified
— how we verify · changelog

Legal rate absent a written agreement; open accounts start 6 months after the last item. A separate variable rate governs once suit is filed.

Pre-filled with Iowa's statutory default (5%), which governs only when the contract names no rate; a rate stated in your contract replaces it.

Interest at 5% a year

Interest owed on an overdue invoice in Iowa at 5% per year
Invoice amount30 days late60 days late90 days late
$1,000.00$4.11$8.22$12.33
$5,000.00$20.55$41.10$61.64
$10,000.00$41.10$82.19$123.29

Maximum late fee in Iowa — written B2B contracts

No statutory cap

Basis: Iowa Code § 535.2(2)(a)(5).

About this page

Iowa rent late fee law

Iowa ties the late fee limit to the rent: for rent of up to $700 a month, no more than $12 a day and $60 a month in total; for rent above $700, no more than $20 a day and $100 a month in total.

4. For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.
— Iowa Code § 562A.9(4). Read it at the official source · checked .

Before you send the late rent notice: it is a reminder letter about overdue rent and a late charge, not an eviction notice. A notice to pay rent or quit is a separate document, and Iowa has its own rules for it. Nothing on this page is legal advice.

What Iowa law says about invoice interest

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
— Iowa Code § 535.2(1), (2)(a), (2)(a)(5) (Iowa Code 2026). Read it at the official source · row verified 2026-08-19.

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.

Not legal advice. Figures were last verified on the date shown; check the cited statute before charging a late fee.