Late Payment Fee APR Calculator
Convert supplier or customer late fees into an annualized APR you can compare against credit lines or card rates. Enter the invoice amount and the percentage fee to see the dollar charge, implied APR based on the days overdue, and the daily cost of letting the invoice linger.
Actual finance charges may vary by contract and jurisdiction. Confirm terms before relying on any APR comparison.
Examples
- $25,000 invoice with a 1.5% late fee paid 30 days late ⇒ Late fee: $375.00 USD • Effective APR: 18.25% • Daily cost over 30 days late: $12.50 USD.
- $8,000 invoice with a 2.0% late fee paid after 15 days ⇒ Late fee: $160.00 USD • Effective APR: 48.67% • Daily cost over 15 days late: $10.67 USD.
FAQ
Does this include compounding if the invoice remains unpaid?
No. It annualizes the single late fee using simple interest. Repeated monthly fees would increase the effective rate.
What if the contract charges a flat dollar late fee?
Convert the flat fee to a percentage of the invoice amount first, then enter that percentage to see the APR.
How should I compare this to factoring or credit lines?
Use the APR output as a hurdle—if the late fee APR exceeds your financing cost, it is cheaper to borrow and pay the invoice on time.
Additional Information
- Result unit: USD for the fee and daily cost, percent for the APR.
- Defaults to 30 days late when no duration is provided to keep APR comparable across invoices.
- Uses simple interest with no compounding; treat the APR as a benchmark against financing alternatives.