California Late Fee Calculator
Based on Cal. Civ. Code §3287; Cal. Const. art. XV §1
QuickBillMaker applies late fees automatically based on your configured policy. Set it once and stop chasing payments by hand.
How California late fees work
In California, late payment fees on commercial invoices are governed by Cal. Civ. Code §3287; Cal. Const. art. XV §1. The legal maximum is 1.5% per month (18% annualized). Late fees must be reasonable and in written contract. Statutory interest (no contract) is 10% per year. Penalties beyond reasonable estimate of damages are unenforceable (§1671).
The fee must be stated in a written agreement before the work is performed. Without a written rate, only the statutory default rate applies.
California prompt-pay law
California Prompt Payment Act (Gov. Code §927); Bus. & Prof. Code §7108.5 (construction) Public contracts: payment within 45 days. Construction subs: 10 days from prime contractor's receipt.
Stop calculating late fees by hand
QuickBillMaker applies your California late fee rate automatically when invoices go overdue.
Automate late fees free