Tennessee Late Fee Calculator
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.
Maximum effective default for uncontracted transactions; courts award prejudgment interest in equity at up to 10%.
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 Tennessee's statute (Tenn. Code Ann. §§ 47-14-102, -103, -123) for you.
What Tennessee law actually says
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.
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 (~10.75%, max 24%).
Floating 'formula rate' caps written contracts (incl. commercial): lesser of Fed prime +4 pts or 24%, published weekly (10.75% as of Aug 18, 2026). No general business exemption.
Basis: Tenn. Code Ann. §§ 47-14-102, -103. 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 Tennessee'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
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
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 2026-08-19. Consumer and rent debts follow separate laws.
What is the maximum late fee I can charge 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 (Aug 18, 2026: 10.75%). Basis: Tenn. Code Ann. §§ 47-14-102, -103. 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 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 2026-08-19).
Does this cover rent, apartment, or consumer late fees in Tennessee?
No. This page covers business-to-business invoices only. Residential rent late fees are governed by Tennessee'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 — Tennessee'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 Tennessee'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.