Take the annual percentage you have entered in the system and divide that by 365 (Days of the Year). You then take that number and multiply that by days overdue. You would then take that number as a percentage and multiply that by the Invoice Total and it will equal the amount of late fee calculated.
Please see example below:
If your invoice total is $474.25 and a $34.85 late fee charge has been calculated and it is 149 days overdue, here is how the formula will look:
18% (annual percentage) /365 (Days of the Year) = 0.49315... x 149 (Days Overdue) = 7.34794...
You then take the 7.34794% and multiply it by the Invoice total, so 474.25 x .07347 = $34.85
*Bill4Time does not use compounding interest - it is a simple interest late fee.
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