Iowa Late Fee Calculator
Based on Iowa Code §535.2 (legal rate of interest); §535.5
QuickBillMaker applies late fees automatically based on your configured policy. Set it once and stop chasing payments by hand.
How Iowa late fees work
In Iowa, late payment fees on commercial invoices are governed by Iowa Code §535.2 (legal rate of interest); §535.5. The legal maximum is 1.5% per month (18% annualized). Legal rate 5% per year; commercial contracts may set higher rates in writing. Most service contractors 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.
Iowa prompt-pay law
Iowa Prompt Payment Act (Iowa Code §573.12 for construction; §8A.514 for state) Public construction: 30 days for partial payments; subs paid within 7 days of GC receiving payment.
Stop calculating late fees by hand
QuickBillMaker applies your Iowa late fee rate automatically when invoices go overdue.
Automate late fees free