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Late Payment Interest in Georgia (2026)

7% per year — O.C.G.A. §7-4-2: legal rate is 7% per year simple where the rate is not established by written contract; §7-4-15 applies it to liquidated demands from when due. On a $5,000 invoice 60 days overdue, the money already owed to you looks like this:

Total owed on a $5,000 invoice · 60 days late

$5,057.53

Growing $0.96 every day it stays unpaid

principal
$5,000
interest
$57.53

Rate verified 2026-07-06 · Source: O.C.G.A. §7-4-2 (Justia) · Methodology

Calculate your invoice

Rate prefilled from the Georgia default (7% per year) — override it if your contract sets its own.

$

60 days overdue

%

Georgia default: 7% per year

Total now owed to you · Georgia

$5,057.53

$5,000 principal · 60 days overdue at 7%

interest accrued
$57.53
growing daily by
$0.96

Simple interest: amount × (7% ÷ 365) × 60 days. Information, not legal advice — contract terms can override statutory defaults.

The rule in plain English

Georgia’s legal rate of interest is 7% per year simple where no written contract establishes a different rate.

For invoices, O.C.G.A. §7-4-15 is the key provision: all liquidated demands (fixed, ascertainable amounts) bear interest from the time the party is liable and bound to pay — i.e. from the due date.

Post-judgment interest is different: judgments accrue at the prime rate plus 3% (about 9.75% with prime at 6.75% in July 2026), fixed at judgment.

Written B2B contracts can set higher rates (Georgia permits any rate in writing up to $3,000,000 loans; commercial accounts commonly use 1.5%/month).

Legal basis: O.C.G.A. §§7-4-2, 7-4-15.

Worked example

invoice = $5,000, 60 days overdue, rate = 7.00%

daily interest = $5,000 × (7.00% ÷ 365) = $0.96

interest = $0.96 × 60 days = $57.53

total owed = $5,057.53

What to include in your demand letter

A short, factual letter recovers more invoices than a heated one. Checklist (general guidance, not legal advice):

  • Invoice number, date, original due date, and the exact principal outstanding.
  • The interest calculation shown line by line — principal, rate (7% per year), days overdue, daily amount — so there is nothing to dispute.
  • The legal or contractual basis for the interest (O.C.G.A. §§7-4-2, 7-4-15; cite your contract clause first if you have one).
  • A single clear deadline (7 or 14 days is customary) and the payment details — remove every excuse for delay.
  • What happens next if unpaid: a letter before action, small claims / court filing, or referral to collections — stated plainly, without threats you don’t intend to keep.
  • A note that interest continues to accrue daily until payment — quote the per-day figure from the calculator above.

FAQ

What interest can I charge on a late invoice in Georgia?
O.C.G.A. §7-4-2: legal rate is 7% per year simple where the rate is not established by written contract; §7-4-15 applies it to liquidated demands from when due. On a $5,000 invoice 60 days overdue, that is about $57.53 in interest. (O.C.G.A. §§7-4-2, 7-4-15; verified 2026-07-06.)
Do I need a clause in my contract to charge this?
Effectively yes. Georgia has no automatic statutory right to add interest to a private commercial invoice — your contract or terms of trade should specify the rate. Without one, you are limited to the default legal rate (7% per year) on liquidated debts, typically only recoverable once you pursue the claim.
How is late payment interest calculated?
Simple interest on a daily basis: invoice amount × (annual rate ÷ 365) × days overdue. Interest normally runs from the day after the due date. The calculator above shows the formula with your own numbers.
Can I really send an invoice for the interest?
Yes — the standard practice is a short statement or updated invoice showing the principal, the daily interest accrued to date and the legal basis (O.C.G.A. §§7-4-2, 7-4-15). Many creditors find the demand itself prompts payment. This site provides information, not legal advice; for significant sums, confirm your position with a professional before escalating.

This page is general information about Georgia, verified 2026-07-06 against O.C.G.A. §7-4-2 (Justia). It is not legal advice, and statutory rules have exceptions and transition rules that a short summary cannot capture. Contract terms often override statutory defaults. For significant or disputed sums, consult a qualified professional in your jurisdiction.

Other jurisdictions

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