FreelanceA client is late. What can you add to the invoice?
Enter the invoice, how late it is, and the late fee in your terms. You get the fee, the new balance, and wording to send that stays polite.
Late fee
$53.26
New balance $2,453.26
$2,400.00 x 1.5% a month x 12 months / 365 days = $1.18 a day. Over 45 days that is $53.26.
Late fee $53.26. New balance $2,453.26.
Charge a late fee only if your contract or invoice terms said so before the work started. Limits on late fees and interest vary by state and by contract, so check yours before you send this.
| The invoice | |
|---|---|
| Invoice amount | $2,400.00 |
| Days late | 45 |
| The fee | |
| Monthly rate as a yearly rate | 18% |
| Fee per day late | $1.18 |
| Late fee | $53.26 |
| New balance | $2,453.26 |
Wording to paste into an email
Hi [client name], I hope you are well. Invoice [number] for $2,400.00 was due on [due date] and is now 45 days past due. As set out in our agreement, overdue balances carry a late fee of 1.5% per month, which comes to $53.26 as of today. The updated balance is $2,453.26. If payment is already on its way, thank you, and please ignore this note. If something is holding it up, just reply and let me know. I am happy to help sort it out. Thanks, [your name]
FreelanceCFO shows which invoices are overdue and by how much, and Lance drafts the follow up for you to review and send yourself.
Start freeQuestions answered.
How much can I charge as a late fee on an invoice?
Whatever your contract or invoice terms said before the work started, within the limits of your state. A monthly rate of 1% to 1.5% is common in freelance contracts, and some use a flat fee instead. Many states cap interest or late charges, and the caps differ, so check your state's rules before you pick a number.
Can I add a late fee if my contract did not mention one?
Usually not. A late fee works because the client agreed to it in advance. Adding one afterwards is often unenforceable and tends to sour the relationship. Put the terms in your next contract and on every invoice, and this calculator gives you the number when you need it.
How is a monthly late fee calculated by the day?
Turn the monthly rate into a yearly one, divide by 365, and multiply by the invoice amount and the days late. 1.5% a month is 18% a year, which on a $2,400 invoice is about $1.18 a day, or $53.26 after 45 days. This is simple interest on the original amount, not compounded.
Should I charge a flat fee or a percentage?
A percentage scales with the size of the invoice and the length of the delay, which feels fair on large invoices. A flat fee is simpler to explain and matters more on small ones, where 1.5% a month comes to a few dollars. Some freelancers use a flat fee for the first month and a percentage after that.
How do I ask a client for a late fee politely?
Keep it short and factual, and give them an easy way out. Name the invoice, the due date, the days late, the fee and where it comes from in your agreement, and the new balance. Then assume good faith: if payment is on its way, thank them, and if something is stuck, offer to help. The wording above does all of that.
When does an invoice count as late?
From the day after the due date on the invoice. If your terms are net 30, that is 30 days after the invoice date. Count the days late from the due date, not from the invoice date, or the fee will come out higher than your terms allow.