Arizona Late Fee Calculator
Calculate late fees and interest on overdue invoices in Arizona — pre-set to the state's 10% statutory default rate.
Late fee rules in Arizona
Statutory interest rate
10% per year unless a different rate is contracted for in writing — in which case any agreed rate is lawful. The judgment rate (absent a contracted rate) is the lesser of 10% or prime + 1 point, fixed in the judgment at entry.
A.R.S. § 44-1201(A) (indebtedness); § 44-1201(B) (judgments)
Can you charge more? (contract & caps)
No cap for B2B — § 44-1201(A) allows any interest rate agreed in writing, so Arizona has effectively no usury limit on business debts and the contract controls (courts can still police unconscionable penalty clauses).
Prompt payment rules
Private construction owners owe 1.5% per month (or a higher agreed rate) on late progress payments under A.R.S. § 32-1129.01, with matching contractor-to-subcontractor rules; public procurement late payments accrue 1% per month under § 41-2577.
Worth knowing
Arizona judgments (other than at a written contract rate) bear the lesser of 10% or prime + 1 — and the rate stated in the judgment is locked at entry and never changes.
This page is general information, not legal advice. Statutory rates change — some reset annually or quarterly — and how they apply depends on your contract and situation. Verify current rates against the cited statutes or consult a lawyer before charging interest.
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