Create Late Payment Interest Calculator in Excel and Download for Free

Are you late in paying the due amount of your invoice? And worried about the late payment calculation? Then you have come to the right place. Hope this article will be a quick guide to make a late payment interest calculator in an Excel worksheet including a Free Template to download.

The above image is an overview of the late payment interest calculator.


Download the Calculator

You can download the free Excel template from here and practice on your own.


What is Late Payment Interest

The late payment interest is the extra amount of money that you will have to pay if you fail to pay the amount according to the contracted date while taking a loan or for an invoice with a selected interest rate.

  • A very simple formula to calculate the late payment interest is:
Late Payment Interest = (Owed Amount)×(Interest Rate)×(Delayed Days/ 365)

Uses of Late Payment Interest Calculator

  • The late payment interest calculator will help you to know your monthly interest amount.
  • You will be able to know how much interest you’ll pay for different delayed dates.
  • It will help you to manage your other plans according to your late payment.

How to Make a Late Payment Interest Calculator in Excel

To explore the steps, we’ll use the following dataset that represents some buyers’ invoice details like- their invoice dates, due amounts, contacted payment periods, contacted payment dates, and interest rates.

How to Make a Late Payment Interest Calculator in Excel

I have added two new columns to find the over-days and due interest.

How to Make a Late Payment Interest Calculator in Excel

Now let’s find the over days first.

  • Activate Cell G5
  • Type the following formula in it-
=F5-C5-E5
  • Later, hit the Enter button to get the output.

How to Make a Late Payment Interest Calculator in Excel

We got the first buyers over days.

  • To get the other buyers over days just drag down the Fill Handle icon over the cells G6:G9 to copy the formula.

How to Make a Late Payment Interest Calculator in Excel

All the over-days are now calculated. Now let’s go for the due interests using the formula mentioned above.

How to Make a Late Payment Interest Calculator in Excel

  • In Cell I5 write the following formula
=(D5*H5)*G5/365
  • Then just press the Enter button.

And soon after, you will get the first buyers’ due interest.

  • Finally, drag down the Fill Handle icon for the cells I6:I9 to get all the other due interests.

Then you will get all the buyers’ due interests.


Things to Remember

  • Don’t forget to divide the day number by 365 because the interest rate is given in per year format.
  • Make sure that the cells containing rates are in Percentage format.

Conclusion

I hope the procedures described above will be good enough to make a late payment interest calculator in an Excel worksheet. Feel free to ask any question in the comment section and please give me feedback.


Further Readings

Mithun

Mithun

Hello! I am Md. Sourov Hossain Mithun. Welcome to my profile. Currently, I am working at Exceldemy as an Excel and VBA Content Developer. Excel is amazing software. Here I will post excel related useful articles. I am a graduate of Bangladesh University of Engineering and Technology. I love to learn new things and work with them. Thank you.

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