Work out what a late-paying client actually owes you in interest.
For sole proprietors and small firms staring at an overdue invoice. Applies your contract's interest rate to the days overdue.
Sound familiar?
- “A client's sitting on your invoice and you don't know what you can actually charge them”
- “You're not sure if you're even allowed to add interest”
- “You want to send a demand that has teeth”
What this tool does
Calculates simple interest on an overdue invoice using the annual interest rate set by your contract (defaults to 18% per year, the common 1.5% per month term), based on the days between the due date and the date paid.
Defaults to today's date.
Defaults to 18% per year (1.5% per month) - the common contractual term. Change it to match your contract.
What the law actually says
- •Canada has no single statutory late-payment interest rate. Interest on an overdue invoice is whatever your contract specifies - a common term is 1.5% per month (18% per year). If your contract is silent, you can still claim prejudgment interest at the rate set by your province's courts.
- •In the federal sector and the provinces with prompt-payment laws in force (Ontario, federal, Saskatchewan, Alberta, Manitoba, NWT), there are also strict payment deadlines and a fast adjudication process to force payment - often quicker than court.