Late Fee Calculator / Contractors

Late Fee Calculator for Contractors & Construction

Construction and contracting industries have some of the worst payment practices — the average contractor waits 83 days for payment. Many states have prompt payment acts that set minimum interest rates on late construction payments, often 1-1.5% per month.

Invoice amount

Days overdue45 days

Late fee methodFee rate

%/month

Late fee owed

$337.50

on a $15,000 invoice

Total amount owed$15,337.50

Daily cost of delay$7.50/day

Effective annual rate18.3% APR

After 90 days: $675.00 in fees

That's 4.5% of the invoice value

Typical contractors fee: 1.5%/mo

Range: 1%/mo to 2%/mo + lien rights

Typical Late Fees for Contractors

Level	Late Fee
Low / lenient	1%/mo
Industry standard	1.5%/mo
Aggressive / max	2%/mo + lien rights

Late Payment Tips for Contractors

✓Know your state's Prompt Payment Act — it may set mandatory interest rates higher than your contract
✓File a mechanics lien if payment exceeds 60-90 days (deadlines vary by state)
✓Use progress billing on large projects to limit exposure on any single invoice
✓Document all change orders in writing — undocumented changes are a top cause of payment disputes
✓Send a formal notice of late fee before applying charges — courts view this more favorably

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Late Fees for Other Business Types

Freelancers Consultants Small Businesses Creative Agencies SaaS & Subscriptions