NJ State Law Guide

New Jersey Late Fee Calculator

Calculate late fees for New Jersey invoices using state-specific rules, maximum rates, and grace periods.

NJ Quick Facts

Max Late Fee
No statutory cap; courts have upheld 5% late charges on commercial contracts
Max Interest Rate
6% (no contract); 16% (with contract); exempt for loans $50K+
Grace Period
No statutory grace period
Common Rate
1.5% per month

Applicable Statutes

  • N.J.S.A. § 31:1-1 (contract rate of interest)
  • N.J.S.A. § 2C:21-19 (criminal usury)

Calculate New Jersey Late Fees


Late Fee Settings

Results

Days Overdue
0
Original Amount
$1,000.00
Late Fee
$0.00
Total Due
$1,000.00

Fee Breakdown

Interest fee $0.00
Full Calculator

New Jersey Late Fee Rules

Civil rate: 6% without contract, 16% with contract.

Loans of $50K+ are exempt from civil usury limits.

Business entities cannot raise civil usury as a defense.

Criminal usury: 30% for individuals, 50% for business entities.

NJ Supreme Court: liquidated damages in commercial contracts are presumptively reasonable.

Important Note

New Jersey is very business-friendly. B2B entities cannot claim civil usury, and the criminal threshold for businesses is 50%. Courts presume commercial late fee provisions are reasonable.

This information is for general educational purposes only and does not constitute legal advice. New Jersey laws may change. Consult a licensed attorney in your state for advice specific to your situation.

New Jersey Late Fee FAQs

What is the maximum late fee allowed in New Jersey?

In New Jersey (NJ), the maximum late fee is: No statutory cap; courts have upheld 5% late charges on commercial contracts. The maximum interest rate is 6% (no contract); 16% (with contract); exempt for loans $50K+. Always include late fee terms in your contracts before invoicing.

Is there a grace period for late fees in New Jersey?

New Jersey grace period: No statutory grace period. Check your specific contract terms and applicable NJ statutes for details.

What is the most common late fee rate used in New Jersey?

The most common late fee rate for commercial invoices in New Jersey is 1.5% per month. New Jersey is very business-friendly. B2B entities cannot claim civil usury, and the criminal threshold for businesses is 50%. Courts presume commercial late fee provisions are reasonable.

Which New Jersey statutes govern late fees on invoices?

The key New Jersey statutes governing late fees and interest on invoices are:

  • N.J.S.A. § 31:1-1 (contract rate of interest)
  • N.J.S.A. § 2C:21-19 (criminal usury)

Consult a NJ attorney for advice specific to your situation.

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