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Late Payment Interest in North Carolina (2026)

8% per year — N.C.G.S. §24-1: legal rate of interest is 8% per year where no rate is agreed; applies to contract debts from breach and to judgments. 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

$5,065.75

Growing $1.10 every day it stays unpaid

principal
$5,000
interest
$65.75

Rate verified 2026-07-06 · Source: NC General Assembly — G.S. 24-1 · Methodology

Calculate your invoice

Rate prefilled from the North Carolina default (8% per year) — override it if your contract sets its own.

$

60 days overdue

%

North Carolina default: 8% per year

Total now owed to you · North Carolina

$5,065.75

$5,000 principal · 60 days overdue at 8%

interest accrued
$65.75
growing daily by
$1.10

Simple interest: amount × (8% ÷ 365) × 60 days. Information, not legal advice — contract terms can override statutory defaults.

The rule in plain English

North Carolina’s legal rate of interest is 8% per year, and it does the heavy lifting whenever parties have not agreed a rate.

Under §24-5, the amount owed on a breached contract — an unpaid invoice included — bears interest at the contract rate, or at the 8% legal rate if the contract names none, from the date of breach until paid.

Judgments on contract claims continue at the same rate (contract rate or 8%) after judgment.

Agreed late-fee clauses in B2B terms are generally enforceable; consumer transactions face stricter limits.

Legal basis: N.C. Gen. Stat. §24-1; §24-5.

Worked example

invoice = $5,000, 60 days overdue, rate = 8.00%

daily interest = $5,000 × (8.00% ÷ 365) = $1.10

interest = $1.10 × 60 days = $65.75

total owed = $5,065.75

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 (8% per year), days overdue, daily amount — so there is nothing to dispute.
  • The legal or contractual basis for the interest (N.C. Gen. Stat. §24-1; §24-5; 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 North Carolina?
N.C.G.S. §24-1: legal rate of interest is 8% per year where no rate is agreed; applies to contract debts from breach and to judgments. On a $5,000 invoice 60 days overdue, that is about $65.75 in interest. (N.C. Gen. Stat. §24-1; §24-5; verified 2026-07-06.)
Do I need a clause in my contract to charge this?
Effectively yes. North Carolina 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 (8% 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 (N.C. Gen. Stat. §24-1; §24-5). 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 North Carolina, verified 2026-07-06 against NC General Assembly — G.S. 24-1. 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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