Calculate finance charges

[WINDMILL]

Would someone please direct me to which formula to use, (or spreadsheet
template)to calculate finance charges on over due invoices? I'm looking at 2%
per month, for daily, on invoices over 30 days - aged receivables. All
direction appreciated.

 

[Daryl S]

Windmill -

Assuming column A contains the due date, and column B the amount due, then
this will give you the interest due:
=(MONTH(TODAY()) - MONTH(A5) + IF(DAY(TODAY())> DAY(A5),0,-1))*0.02*B5

This makes several assumptions on your methodology. It assumes no
compounding of interest, and that you are using a calendar month (e.g. not
360-day accounting). It basically counts the months between today and the
due date, adjusting the month down one if today's day of the month is less
than the due date's day of the month, then multiplies this by the 2% per
month interest rate, times the amount due.