How the Charge Late Fees/Interest report calculates interest
To use the Charge Late Fees/Interest report correctly, it is important to know how it calculates interest.
The Charge Late Fees/Interest report uses this method to
calculate interest for an overdue account:
- Overdue account balance × interest rate ∕ 100 × number of days for the charge ∕ days in the year
Given these inputs for one client:
- Overdue account balance: 225
- Interest rate: 20 %
- Number of days for the charge: 1 May to 31 May