Michigan Late Fee Calculator

Work out interest on an overdue B2B invoice under Michigan law. When the contract is silent, the default is no automatic rate — the currently published figure, the official page that sets it, the written-contract cap, and the statute are all on this page.

No automatic rate 4.959% (Jul–Dec 2026) — see note below
Max written B2B rate
7% nominal cap — but corporations and business entities may agree in writing to any rate (usury defense barred); outer criminal line is 25%.
Cap regime
Hard cap — 25% criminal
Statute
MCL 438.31, 438.61, 450.1275; MCL 600.6013
Current rate source
official current-rate page
Verified
— how we verify · changelog

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).

Michigan's default (contract silent): no automatic rate. Published figure: 4.959% (Jul–Dec 2026) — see the note above for when it applies, confirm it on the official page, then enter the rate that applies (or your contract's rate).

The cited statute provides for annual compounding; this calculator shows simple interest, so multi-year totals under the statute will be slightly higher.

What Michigan law actually says

The interest of money shall be at the rate of $5.00 upon $100.00 for a year, [...] except that in all cases it shall be lawful for the parties to stipulate in writing for the payment of any rate of interest, not exceeding 7% per annum.
— Mich. Comp. Laws § 438.31 (Act 326 of 1966, Sec. 1; Am. 1970, Act 227). Read it at the official source · row verified 2026-08-19.

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 Michigan — written B2B contracts

Hard cap 25% criminal.

Corporations/business entities may agree to any rate (civil usury defense barred), but the 25%/yr criminal-usury cap still binds them — that is the real B2B ceiling.

Basis: MCL 450.1275, 438.61, 438.41. 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 Michigan'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

Michigan'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.

Michigan late fee FAQ

Can I charge late fees on overdue invoices in Michigan?

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: No automatic rate; currently published figure: 4.959% (Jul–Dec 2026). 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). Statute: MCL 438.31, 438.61, 450.1275; MCL 600.6013, verified 2026-08-19. Consumer and rent debts follow separate laws.

What is the maximum late fee I can charge in Michigan?

For a written B2B contract: 7% nominal cap — but corporations and business entities may agree in writing to any rate (usury defense barred); outer criminal line is 25%. Basis: MCL 450.1275, 438.61, 438.41. 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 Michigan?

No automatic 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). Currently published figure: 4.959% (Jul–Dec 2026). Confirm the applicable figure via the official page linked on this page before relying on it. Statute: MCL 438.31, 438.61, 450.1275; MCL 600.6013.

Does this cover rent, apartment, or consumer late fees in Michigan?

No. This page covers business-to-business invoices only. Residential rent late fees are governed by Michigan'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 — Michigan'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 Michigan'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.