Finance Tools

Underpayment Penalty Calculator

Estimate IRS underpayment penalties based on unpaid tax amount, annual penalty rate, and number of days underpaid.

Enter values to estimate underpayment penalty.

Note: This is a simplified daily-interest estimate. Actual IRS penalties may vary by quarter, rate changes, and safe-harbor rules.

How to use this underpayment penalty calculator

  1. Enter the unpaid tax amount.
  2. Enter the annual penalty (interest) rate.
  3. Enter the number of days the tax was unpaid.
  4. Click Calculate to estimate the penalty.

Example

If $5,000 of tax was underpaid for 120 days at a 7% annual rate:

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