What should payment terms say on an invoice?

State when payment is due (for example net 30), the currency, how to reference the invoice number, and any late fee or interest if your contract allows it.

What is a late fee clause?

It is a sentence in your terms that charges a percent of the overdue balance if payment is late. Many businesses use 1–2% per month or a flat percent of the invoice.

Is net 30 calendar days or business days?

Most freelancer invoices use calendar days unless the contract says business days. This generator lets you pick either; the due date calculator uses calendar days by default.

What is the difference between invoice footer and contract wording?

Invoice footer text is short enough for a PDF or invoice template. Contract wording uses full paragraphs for SOWs, MSAs, or proposals. You can copy either format or individual sections.

Can I copy the generated clause into my contract?

Yes. Review with your lawyer for your state or country if the amounts are large or regulated. Then paste into invoices, SOWs, or MSAs.

Tools

Payment terms & late fee clause generator (2026)

Use quick presets or customize net terms, calendar vs business days, deposit, payment methods, and late fee language. Copy a short invoice footer or full contract clause. Due date calculator · Late fee calculator

Updated May 22, 2026

Clause generator

Quick presets

Payment terms

Due date counting

Currency

Match due dates in the due date calculator.

Payment methods

Bank transfer / ACH / wireCheckCard or payment link

Require upfront depositCommon for new clients or large projects.Include late fee clause

Late fee (% of outstanding balance)

Model amounts in the late payment calculator.

Include simple interest clause

Net 30 · calendar days · 1.5% late fee

Payment is due 30 calendar days from the invoice date (Net 30) Balances not paid by the due date may incur a late fee of 1.5% of the outstanding amount. Currency: USD. Accepted payment methods: Bank transfer / ACH / wire.

Copy by section (contract style)

When payment is due
Payment is due 30 calendar days from the invoice date (Net 30).
Currency
All amounts are quoted in USD unless stated otherwise.
Payment methods
Accepted payment methods: Bank transfer / ACH / wire.
Late fee
Balances not paid by the due date may incur a late fee of 1.5% of the outstanding amount.
Remittance
Please include the invoice number on your remittance. Questions about this invoice should be sent in writing before the due date.

Need longer wording? Switch to .

Payment terms wording for freelancers

Clear terms on every invoice reduce awkward follow-ups later. Net 30 is common for B2B work; shorter terms may fit smaller projects.

Only add late fee or interest language if you are willing to enforce it and your jurisdiction allows it. This generator is a starting point, not legal advice.

Payment terms generator FAQ

What should payment terms say on an invoice?: State when payment is due (for example net 30), the currency, how to reference the invoice number, and any late fee or interest if your contract allows it.
What is a late fee clause?: It is a sentence in your terms that charges a percent of the overdue balance if payment is late. Many businesses use 1–2% per month or a flat percent of the invoice.
Is net 30 calendar days or business days?: Most freelancer invoices use calendar days unless the contract says business days. This generator lets you pick either; the due date calculator uses calendar days by default.
What is the difference between invoice footer and contract wording?: Invoice footer text is short enough for a PDF or invoice template. Contract wording uses full paragraphs for SOWs, MSAs, or proposals. You can copy either format or individual sections.
Can I copy the generated clause into my contract?: Yes. Review with your lawyer for your state or country if the amounts are large or regulated. Then paste into invoices, SOWs, or MSAs.