Late Rent Interest Calculator

Formula

The formula to calculate the interest due on late rent payments is:

\[ ID = RA \times \left(\frac{IR}{100 \times 365}\right) \times DL \]

Where:

$ID$ 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

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.

Example Calculations

Let's assume the following values for two examples:

Example 1:

Rent Amount (RA) = $1000
Annual Interest Rate (IR) = 5%
Days Late (DL) = 10

Using the formula:

\[ ID = 1000 \times \left(\frac{5}{100 \times 365}\right) \times 10 \approx 1.37 \, \text{\$} \]

The Interest Due is approximately $1.37.

Example 2:

Rent Amount (RA) = $1500
Annual Interest Rate (IR) = 7%
Days Late (DL) = 15

Using the formula:

\[ ID = 1500 \times \left(\frac{7}{100 \times 365}\right) \times 15 \approx 4.32 \, \text{\$} \]

The Interest Due is approximately $4.32.