Invoice late fee wording: examples you can put on your invoices

A late fee only works if the customer knew about it before they agreed to buy. The most important wording is in your contract or terms of sale; the invoice repeats it as a reminder.

Put it in your terms first

Include the late fee in your quote, proposal or service agreement and have the customer accept it. Adding a fee for the first time on an overdue invoice is hard to enforce and tends to damage the relationship.

Example wording: flat fee

• Payment is due within 30 days of the invoice date. A late fee of $50 will be applied to balances unpaid after the due date.
• Invoices not paid by the due date will incur a one-time late charge of $35.

Example wording: percentage

• Balances unpaid after the due date are subject to a late charge of 1.5% per month on the outstanding amount, or the maximum permitted by law, whichever is lower.
• A finance charge of 1% per month will be applied to overdue balances.

Example wording: early payment incentive

Some customers respond better to a carrot: 2% discount if paid within 10 days; full amount due within 30 days. This is written as 2/10 net 30 on many invoices.

Check the limits

Maximum late fees and interest rates differ by state and country, and consumer transactions are more tightly regulated than business-to-business ones. The phrase 'or the maximum permitted by law, whichever is lower' is common for this reason. Confirm the rules that apply to you with an accountant or lawyer.

Apply it consistently

If you waive the fee for one customer, record why. Inconsistent enforcement makes the policy harder to rely on later.

Frequently asked questions

How do you word a late fee on an invoice?

State the due date and the fee plainly, for example: 'Balances unpaid after the due date are subject to a $50 late fee.' Make sure the same term is in your contract.

What is a reasonable late fee?

Many businesses use a flat fee or around 1% to 1.5% per month, but the permitted maximum depends on your jurisdiction and whether the customer is a consumer or a business.

Can I add a late fee that was not in the contract?

It is generally difficult to enforce a fee the customer did not agree to in advance. Add it to your terms for future work instead.