Reference · Georgia · 2026
Georgia late payment interest rate
When your contract sets no rate, the Georgia figure for interest on an overdue B2B invoice is 7% (18% on commercial accounts), under O.C.G.A. § 7-4-2; § 7-4-16.
7% simple is the general legal rate — but § 7-4-16 lets the owner of a commercial account charge 1.5% per month on balances 30+ days past due even with no agreement.
- Rate
- 7% (18% on commercial accounts)
- Statute
- O.C.G.A. § 7-4-2; § 7-4-16
- 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 Georgia site blocks automated access. Confirm it against the official code before relying on it in a dispute.
What 7% comes to on an unpaid invoice
Simple interest at 7% a year on a 365-day year. Count the days from when interest starts to run in Georgia, which is not always the due date.
| Invoice | 30 days | 60 days | 90 days |
|---|---|---|---|
| $5,000 | $28.77 | $57.53 | $86.30 |
| $10,000 | $57.53 | $115.07 | $172.60 |
| $50,000 | $287.67 | $575.34 | $863.01 |
Work out the interest on your invoice
Prefilled with Georgia's legal rate of 7%. If your contract sets a rate, use that instead.
Interest you can claim
$115.07
$10,115.07 with the invoice · $1.92 a day
The ceiling
How high can a late fee go in Georgia?
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.
Georgia's ceiling: Georgia's own statute lets a business charge 1.5% a month on commercial accounts 30 or more days past due, with no agreement needed (O.C.G.A. § 7-4-16).
So 18% a year is the figure Georgia law itself uses for commercial accounts.
Ceiling checked September 12, 2026.
Late payment wording for a Georgia invoice
On your invoice
Payment is due by the date shown on this invoice. Late payments are subject to interest at the legal rate under O.C.G.A. § 7-4-2; § 7-4-16 (7% (18% on commercial accounts)).
This restates what Georgia 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 Georgia law sets it.
How Georgia compares
Of the 46 states with a rate that applies on its own, 27 set a higher one and 16 a lower one. The middle of the range is 8%.
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 O.C.G.A. § 7-4-2; § 7-4-16.