How to calculate interest on an overdue invoice.

Tips for calculating interest charges for late payments.

It’s important to explicitly include late fees and rules in your contracts with clients. If you outline this from the outset, there will be no unwelcome surprises — and you’ll have an enforceable mechanism for payment. But then the question is, what’s reasonable to charge?

How to calculate interest.

There’s no standard interest rate charge, or “late fee,” for an overdue invoice, though there are some established ways to calculate it:

Considerations when calculating.

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