Tennessee Late Fee Calculator

10% most a lease may charge as a late fee
Rent limit
10% of the overdue rent
Earliest fee day
Day 5 after the due date
Statute
Tenn. Code Ann. § 66-28-201(d)
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 Tennessee limit; type the figure from your lease.
Tenn. Code Ann. § 66-28-201(d) lets a fee start on day 5, so this box starts at 4 days; typing less will not move that day.

Your late fee

$125.00

At the legal limit

Paid 12 days late, after the 4-day grace period.

The lease asks for $125.00, exactly the most Tenn. Code Ann. § 66-28-201(d) permits on these figures.

Days past due
12 days
Grace period ends
October 2, 2026
Earliest fee date
October 3, 2026
Lease late fee
10% of $1,250.00 = $125.00
Legal maximum
$125.00
Rent + late fee
$1,375.00

Limit set by Tenn. Code Ann. § 66-28-201(d) (10% of the overdue rent): $125.00

10% × $1,250.00 overdue rent = $125.00

Tenn. Code Ann. § 66-28-201(d), earliest legal fee date: October 3, 2026

Next step: turn these figures into a late rent notice for the tenant.

Tennessee rent late fee law

Tennessee: no late fee may be charged during a five-day grace period that begins on, and includes, the day rent is due, and any late charge is limited to 10% of the past-due rent.

Tennessee's quoted section belongs to its Uniform Residential Landlord and Tenant Act; confirm that the county where the rental sits is covered by the Act.

(d) There shall be a five-day grace period beginning the day the rent was due to the day a fee for the late payment of rent may be charged. The date the rent was due shall be included in the calculation of the five-day grace period. [...] Any charge or fee, however described, which is charged by the landlord for the late payment of rent, shall not exceed ten percent (10%) of the amount of rent past due.
— Tenn. Code Ann. § 66-28-201(d) (2011 Tenn. Pub. Acts ch. 272, § 4). Read it at the official source · checked .

Late rent notice builder

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

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 10, 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 September 28, 2026. As of October 10, 2026, $1,250.00 of it is still unpaid (12 days past due).

Your lease provides for a late charge, which comes to $125.00.

Amount now due

Unpaid rent
$1,250.00
Late charge
$125.00
Total
$1,375.00

Please pay $1,375.00 at your earliest opportunity.

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

Regards,

[Your name or company]

How to use the Tennessee rent late fee calculator

  1. Enter the monthly rent and the rent that is overdue.
  2. Enter the date the rent was due and the date it was paid, or today if it is still unpaid.
  3. Choose how the lease sets the late fee (percent of rent, flat amount or dollars per day) and type the figure from the lease.
  4. Enter the grace days written in the lease.
  5. Read the late fee, the earliest fee date and the most Tenn. Code Ann. § 66-28-201(d) allows, then copy the figures or print a late rent notice.

Work out interest on an overdue B2B invoice under Tennessee law. The often-quoted 10% figure is a statutory ceiling, not an automatic entitlement — what that means, the written-contract cap, and the verbatim statute are all on this page.

10% statutory ceiling — not automatic (see note)
Max written B2B rate
Formula rate: lesser of Fed prime +4 pts or 24%, announced weekly by the TN Dept. of Financial Institutions (Oct 6, 2026: 11.00%).
Cap regime
Hard cap — formula rate (11.00% on Oct 6, 2026; max 24%)
Statute
Tenn. Code Ann. §§ 47-14-102, -103, -123
Written-cap ceiling source
TDFI weekly formula rate announcement (11.00%, Oct 6, 2026)
Verified
— how we verify · changelog

Maximum effective default for uncontracted transactions; courts award prejudgment interest in equity at up to 10%.

Tennessee's 10% is a statutory ceiling, not an automatic entitlement — see the note on this card. Enter your contract rate or the figure that applies to your case.

What Tennessee law says about invoice interest

Except as otherwise expressly provided by this chapter or by other statutes, the maximum effective rates of interest are as follows: [...] (2) For all written contracts [...] signed by the party to be charged, and not subject to subdivision (1), the applicable formula rate; and (3) For all other transactions, ten percent (10%) per annum.
— Tenn. Code Ann. § 47-14-103 (text via FindLaw's Tennessee Code republication; the official Lexis portal is session-gated). Read it at the official source · row verified 2026-10-10.

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 Tennessee — written B2B contracts

Hard cap formula rate (11.00% on Oct 6, 2026; max 24%).

Floating 'formula rate' caps written contracts (incl. commercial): lesser of Fed prime +4 pts or 24%, published weekly (11.00% as announced Oct 6, 2026). No general business exemption.

Basis: Tenn. Code Ann. §§ 47-14-102, -103. Compare all 51 jurisdictions in the maximum late fee by state table and cap-regime map.

Rent and invoices follow different laws — consumer debt is not covered

The Invoice tab, the rate card and the statute sections on this page are about business-to-business invoices. Residential rent late fees live in Tennessee's landlord-tenant law. On the Rent tab, Tenn. Code Ann. § 66-28-201(d) is checked against your lease figures and quoted in full. Consumer credit has separate, stricter rules. The distinction is explained in B2B invoice late fees vs. residential rent.

Use this data

Tennessee'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.

Tennessee late fee FAQ

Is there a legal limit on rent late fees in Tennessee?

Tennessee: no late fee may be charged during a five-day grace period that begins on, and includes, the day rent is due, and any late charge is limited to 10% of the past-due rent. Source: Tenn. Code Ann. § 66-28-201(d), checked 2026-09-29; the Rent tab quotes it word for word.

When can a landlord charge a late fee in Tennessee?

Not before day 5 after the rent was due (Tenn. Code Ann. § 66-28-201(d)). Enter the due date and the lease's grace days in the calculator to get the earliest date a fee may be charged.

How do I work out a late fee on rent in Tennessee?

Enter the monthly rent, the overdue amount, the date the rent was due and the date it was paid, then the late fee in the lease (a percent of rent, a flat amount or dollars per day) and its grace days. The calculator gives the late fee, the earliest fee date, the most Tenn. Code Ann. § 66-28-201(d) allows and rent plus fee, and turns them into a late rent notice.

Can I charge late fees on overdue invoices in Tennessee?

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: 10% — a statutory ceiling, not an automatic entitlement. Maximum effective default for uncontracted transactions; courts award prejudgment interest in equity at up to 10%. Statute: Tenn. Code Ann. §§ 47-14-102, -103, -123, verified 2026-10-10. Consumer and rent debts follow separate laws.

What is the maximum late fee on a B2B invoice in Tennessee?

For a written B2B contract: Formula rate: lesser of Fed prime +4 pts or 24%, announced weekly by the TN Dept. of Financial Institutions (Oct 6, 2026: 11.00%). Basis: Tenn. Code Ann. §§ 47-14-102, -103. The full cap analysis is on the Invoice (B2B) tab; 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 Tennessee?

10% — but that figure is a statutory ceiling, not an automatic entitlement. Maximum effective default for uncontracted transactions; courts award prejudgment interest in equity at up to 10%. Statute: Tenn. Code Ann. §§ 47-14-102, -103, -123 (verbatim quote on this page, verified 2026-10-10).

Where does this data come from, and when was it verified?

Every invoice-interest 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 — Tennessee's row was last verified 2026-10-10. 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). For rent, the Rent tab quotes Tenn. Code Ann. § 66-28-201(d) word for word, links its source and gives the date it was checked (2026-09-29).