Reference · Colorado · 2026
Colorado late payment interest rate
When your contract sets no rate, the Colorado figure for interest on an overdue B2B invoice is 8%, under Colo. Rev. Stat. § 5-12-101.
Compounded annually; the same 8% applies to money wrongfully withheld (§ 5-12-102). Agreement controls up to the 45% criminal ceiling.
- Rate
- 8%
- Statute
- Colo. Rev. Stat. § 5-12-101
- Type
- Fixed by statute.
- Source
- codes.findlaw.com · verified July 9, 2026
Statute text read on codes.findlaw.com, a legal mirror, because the official Colorado site blocks automated access. Confirm it against the official code before relying on it in a dispute.
What 8% comes to on an unpaid invoice
Simple interest at 8% a year on a 365-day year. Count the days from when interest starts to run in Colorado, which is not always the due date.
| Invoice | 30 days | 60 days | 90 days |
|---|---|---|---|
| $5,000 | $32.88 | $65.75 | $98.63 |
| $10,000 | $65.75 | $131.51 | $197.26 |
| $50,000 | $328.77 | $657.53 | $986.30 |
Work out the interest on your invoice
Prefilled with Colorado's legal rate of 8%. If your contract sets a rate, use that instead.
Interest you can claim
$131.51
$10,131.51 with the invoice · $2.19 a day
The ceiling
How high can a late fee go in Colorado?
Your contract decides. The rate above only applies when your terms are silent. Between businesses, an agreed late-interest rate or late fee replaces it, within two limits: the state's ceiling on agreed rates, and the rule that a late fee must compensate you rather than punish the customer.
Colorado's ceiling: Only the 45% criminal ceiling (C.R.S. § 18-15-104).
The common US convention of 1.5% a month (18% a year) sits inside that ceiling.
Ceiling checked September 12, 2026.
Late payment wording for a Colorado invoice
On your invoice
Payment is due by the date shown on this invoice. Late payments are subject to interest at 8% a year, the legal rate under Colo. Rev. Stat. § 5-12-101.
This restates what Colorado law applies when your contract is silent. If your contract sets a rate, quote that instead. The wording doesn't say when interest starts, because that differs by state; the note at the top of this page covers it where Colorado law sets it.
How Colorado compares
Of the 46 states with a rate that applies on its own, 20 set a higher one and 20 a lower one. The middle of the range is 8%.
Same 8% figure: Connecticut, Indiana, Kentucky, Mississippi and North Carolina.
Interest is the fallback. Getting paid on time is the plan.
DueTrail turns overdue invoices into managed cases with reviewable reminders and recorded promises to pay, so invoices get settled before anyone reaches for Colo. Rev. Stat. § 5-12-101.