Arizona Late Fee Calculator
Based on Ariz. Rev. Stat. §44-1201 (legal rate of interest)
QuickBillMaker applies late fees automatically based on your configured policy. Set it once and stop chasing payments by hand.
How Arizona late fees work
In Arizona, late payment fees on commercial invoices are governed by Ariz. Rev. Stat. §44-1201 (legal rate of interest). The legal maximum is 1.5% per month (18% annualized). Legal rate is 10% per year; commercial contracts may charge up to the rate stated in writing. Service contractors typically use 1.5%/mo.
The fee must be stated in a written agreement before the work is performed. Without a written rate, only the statutory default rate applies.
Arizona prompt-pay law
Arizona Prompt Payment Act (A.R.S. §32-1129 for construction, §41-2577 for state) Construction: 7 days from progress payment certification; otherwise 1% per month interest.
Stop calculating late fees by hand
QuickBillMaker applies your Arizona late fee rate automatically when invoices go overdue.
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