Enter the rent amount, annual interest rate, and the number of days the rent is late into the calculator to determine the interest due on late rent payments.
Late Rent Interest Formula
The following formula is used to calculate the interest due on late rent payments.
ID = RA * (IR / 100 / 365) * DL
Variables:
- ID is the interest due on the late rent payment ($)
- RA is the rent amount ($)
- IR is the annual interest rate (%)
- DL is the number of days the rent is late
To calculate the interest due on late rent payments, multiply the rent amount by the daily interest rate (annual interest rate divided by 365) and then by the number of days the rent is late.
What is Late Rent Interest?
Late rent interest is the additional money owed by a tenant when rent payments are not made on time. It is calculated based on the agreed-upon annual interest rate in the lease or rental agreement. This interest compensates the landlord for the delay in payment and is typically calculated on a daily basis from the day the rent was due until the day it is paid.
How to Calculate Late Rent Interest?
The following steps outline how to calculate the interest due on late rent payments.
- First, determine the rent amount (RA) that is due.
- Next, determine the annual interest rate (IR) agreed upon in the lease or rental agreement.
- Next, determine the number of days the rent is late (DL).
- Next, gather the formula from above = ID = RA * (IR / 100 / 365) * DL.
- Finally, calculate the interest due (ID) on the late rent payment.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Rent Amount (RA) = $1000
Annual Interest Rate (IR) = 5%
Days Late (DL) = 30
