Sales Invoices - Add interest to late invoices (including paid/part-paid Invoices)
Ability to add interest for the late payment. This includes part-paid too
Purpose: Save time by adding the interest without having to delete the existing one and remake a new one with the additional interest.

Hi everyone, a year on from my last engagement we wanted to provide an update for you all here.
As many will be across we're in the midst of making a lot of iterations and improvements to new invoicing leading up to the retirement of classic invoicing in September (2024).
We have a fair amount of work lined up in the teams schedule over the coming months and to give an indication there isn't any committed plans around a function to add interest to invoices.
That said, we do have a team that have picked up and are considering how we might solve this with the technology in new invoicing - It's early days on this yet, but I'll share if there's any progress on this for you all here.
In the meantime, as has been shared by others over time there are a few ways you could accomplish this today;
- Include detail of any charges for late payments to your invoice template Payment terms & details, and
- Edit and add a new line to your invoice to add the late fee - you could make use of Xero's inbuilt calculator for this, or
- Edit and add a 'mark up' to each line of your invoice - again Xero's inbuilt calculator could help with calculating the amounts
- Explore Xero's app store to see if you can find an integration that works for your business needs
- In an effort to prevent late payment of invoices Credit limits may help in being able to prevent customers raising too much debt with your business
We appreciate the options above don't automate the full process of what you're asking here, and we will share if there's any news. Thanks
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Chris Verhoeven commented
Brenda, it is important that xero remains competitive within its market, their products and services especially so. The fact that there are other companies achieving this feature and they have seen the gaint hole in xero so they have made it an app to pay for and use within xero, shows the complete failer of xero listening to their customers.
This thread has gained a fair amount of traction in the last few weeks, xero are even failing to acknowledge it with an update. -
Brenda Templin commented
I agree this is an issue that needs to be solved for all of us. That being said, as a Xero user, I feel we should keep our comments to what is needed to better the software. Each of us have different needs for the software and what is used by one company may not be important to another.
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Tjaart van der Walt commented
Exactly - thank you James. I don't care for the cottage industry trying to cash on Xero users hitting the Trough of Disillusionment. This is Xero's fundamental lack of functionality to solve. Xero should at the very least, give their users the ability to add this into Statements with custom fields.
I guess their business analysts are too busy coming up with features nobody wanted and the developers are too busy playing Tetris.
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James Gossling commented
Denym, you work for paidnice and you already commented that on this thread a year ago. I used paidnice and it's just okay. it's another system to login to and it costs money when this is something that most companies who invoice have in their contracts so it should be a native solution.
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Denym Bird commented
Hi all, you can currently do this with Paidnice, a Xero app specialised in automating late charges in accordance to your payment terms https://www.paidnice.com/late-fees
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Sandra Lester commented
There should be a section on the invoice to remind the customer of the payment terms of the contract, and the late payment interest should calculate automatically based on the payment terms. This is a simple automation. Please add it ASAP!
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Nicola Truuts commented
Any update on this vital feature in Xero? With so many late payers these days I need an easy to use function to be able to calculate and add interest and late payment fees. An update would be appreciated as it's been a year since the last one...
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Michelle Gobbert commented
Would love to see an interest feature rather than having to use Excel spreadsheets and then check back and forth that Excel and Xero balance after the manual entry of an interest invoice in Xero.
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Candace Hunter commented
Is there any update on adding this feature?
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Chris Verhoeven commented
Is this really that hard? What does xero do when customers miss payments to xero?
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Martin Attwell commented
Why has this basic business requirement still not been implemented?
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Chanita Paulsen commented
this feature would work awesome please consider this
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Sharon Guild commented
This is a very necessary tool for my business. Any update?
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Sheena Lyn Ching commented
Any update on this request?
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Sarah Kitcher commented
Agree this is a necessary business tool and a time-saver
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Carter Threatt commented
There should be a function to add automatic late fees and or interest on a contact-by-contact basis or just at all especially since you can't apply a late fee after a partial payment without reversing that payment. Xero needs to add the option to add either a fixed/one-time, daily, weekly, or monthly late fee OR interest percentage or a combination of both.
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Vicki Witty commented
Being able to add interest to an overdue account should just be an integral part of Xero system that we pay for. Why is this so hard for Xero to implement??
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Wendell Beuke commented
Agree this is a necessary business tool and a time-saver.
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Maria Bacigalupo-Rose commented
Looks like this has been an ongoing issue with Xero since 2022. Come on Xero. It's time to start listening to your customers, pull your finger out and include this in your software.
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Margaretha Coetzee commented
When are you guys going to add the interest on late payment function, it's really annoying not having it included in your program? Why do we need to pay for another app?