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Reference · Rhode Island · 2026

Rhode Island late payment interest rate

When your contract sets no rate, the Rhode Island figure for interest on an overdue B2B invoice is 12%, under R.I.G.L. § 6-26-1.

"$12.00 on $100 for one year" in business transactions unless expressly stipulated; civil actions also use 12% (§ 9-21-10).

Rate
12%
Statute
R.I.G.L. § 6-26-1
Type
Fixed by statute.
Source
webserver.rilegislature.gov · verified July 9, 2026

What 12% comes to on an unpaid invoice

Simple interest at 12% a year on a 365-day year. Count the days from when interest starts to run in Rhode Island, which is not always the due date.

Interest at 12% a year on overdue invoices of different sizes in Rhode Island.
Invoice30 days60 days90 days
$5,000$49.32$98.63$147.95
$10,000$98.63$197.26$295.89
$50,000$493.15$986.30$1,479.45

Work out the interest on your invoice

$10,000
$100$100,000
60 days
1 days365 days
12.00%
0.00%30.00%

Prefilled with Rhode Island's legal rate of 12%. If your contract sets a rate, use that instead.

Interest you can claim

$197.26

$10,197.26 with the invoice · $3.29 a day

The ceiling

How high can a late fee go in Rhode Island?

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.

Rhode Island's ceiling on an agreed rate wasn't part of our verified research, so check the state's usury law, or ask a lawyer licensed in Rhode Island, before writing the common 1.5%-a-month (18%) rate into your terms.

How the ceiling and the penalty rule work across states →

Late payment wording for a Rhode Island invoice

On your invoice

Payment is due by the date shown on this invoice. Late payments are subject to interest at 12% a year, the legal rate under R.I.G.L. § 6-26-1.

This restates what Rhode Island 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 Rhode Island law sets it.

How Rhode Island compares

Of the 46 states with a rate that applies on its own, 0 set a higher one and 40 a lower one. The middle of the range is 8%.

Same 12% figure: Idaho, Massachusetts, Nebraska, Vermont and Washington.

See all 50 states in one table →

Before you rely on a figure: this is a reference summary, not legal advice. Verify the current statute through the source above, or ask a lawyer licensed in Rhode Island, before charging interest or sending a demand.

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 R.I.G.L. § 6-26-1.