Question 1

How are late fees calculated?

Accepted Answer

Late fees are based on your state's statutory interest rate, the invoice amount, and the number of days the payment is overdue. DemandFlowww's calculator divides the annual rate by 365 to get a daily rate, then multiplies by the invoice amount and days overdue.

Question 2

Are the interest rates up to date?

Accepted Answer

Rates shown are based on publicly available state statutes. However, laws change — always verify the current rate with your state's official statutes or a licensed attorney before sending a demand.

Question 3

Can I charge late fees on any unpaid invoice?

Accepted Answer

Most states allow creditors to charge statutory interest on overdue payments, but requirements vary by jurisdiction. Some states require the interest rate to be stated in the original contract. Consult an attorney for your specific situation.