Bill a monthly retainer automatically in FreshBooks, with reminders and a late fee

Steps

1. Start a recurring template. Go to Invoices → Recurring Templates → New Recurring Template. You can also start from Create New… → Recurring Template on the dashboard, or from the client's Recurring Templates tab.
2. Fill it in like a normal invoice. Choose the client, set the due date, and add a line such as "Monthly retainer, ::month:: ::year::". FreshBooks swaps ::month:: and ::year:: for the real month and year on each invoice. These variables only work in the item description, Notes, and Terms.
3. Put your late-fee terms in writing. Add your payment terms (for example "Due in 15 days; a 1.5% late fee applies 7 days after the due date") to Terms. FreshBooks remembers Terms from your most recent invoice.
4. Set the schedule. Under Recurring Schedule, set How Often? to Monthly, choose the Next Issue Date, set Number of Invoices to Infinite (or the length of the contract), and choose Send invoices automatically.
5. (Optional) Charge the card automatically. If you use Advanced Payments, check Require credit card for automatic payments so the client is billed each month without lifting a finger.
6. Turn on reminders. In the template's client settings (or the client's profile → Edit), select Send Reminders, check Automatically send payment reminders for this client's invoices, and set Reminder #1 (for example 3 days before due). Add up to two more (for example 3 and 10 days after). Click Done.
7. Turn on the late fee. Select Charge Late Fees, check Automatically add late fees to this invoice if it goes unpaid for too long, choose the type (percentage of invoice value, percentage of outstanding balance, or flat fee), enter the amount, and set When? to the number of days after the due date. Add taxes only if they apply. Click Done.
8. Save the template. Use Save… to save and email it, confirming who receives invoices. Secondary contacts you've sent to recently are pre-checked.

Late-fee calculator

What breaks

• Late fees only attach to new invoices. Turning them on won't add a fee to invoices that already exist. Set it up before the template generates its first invoice.
• Changing it later. You can edit the late-fee amount and timing only while its due date hasn't passed, and the new date must be in the future.
• Changing every client at once. Editing reminders in Email Customization overwrites the reminder settings for all clients' new invoices and recurring templates. Use the client settings to change just one.
• The 1st of the month is busy. FreshBooks says templates set for the 1st can take longer to generate because of the queue. The 2nd is a simple fix. Templates run around 1 AM Eastern on their day.
• Drafts still charge. If you choose "Create draft invoices" but have recurring payments set up, the client's card is still charged.
• Can't make an existing invoice recurring. Duplicate it, choose Make Recurring on the copy, and delete the original.

Check it worked

• The template shows Auto-Sent (or Card Saved with AutoPay) in Recurring Templates.
• Preview shows the right month in the line description.
• Client settings show reminders and the late fee switched on.
• Your Terms mention the fee in plain words.

Sources

• FreshBooks Support: How do I create a recurring template? (checked Nov 7, 2026)
• FreshBooks Support: What are payment reminders and late fees? (checked Nov 7, 2026)

Published November 7, 2026. Sources last read November 7, 2026. Send a correction.