Free Payment Plan Agreement & IOUFill in the form and the payment schedule is worked out for you. Check the preview, then print it or save it as a PDF. No sign-up, and nothing you type is uploaded.

How to make a payment plan agreement in 3 steps

1. 1

   Say who owes whom, and how much

   Choose what the money is for (a loan, past-due rent, a customer’s bill, a purchase), then enter both sides and each amount owed.

2. 2

   Set how it will be paid

   One payment by a date, or installments every week, two weeks or month. Enter the amount of each payment, or the number of payments, and the schedule is worked out for you, with interest if you add it.

3. 3

   Choose the terms, print and sign

   Tick the terms you agree on (late payments, written notice, paying early, a guarantor), then print two copies and both sign each one.

What a payment plan agreement should include

• The names and addresses of the person owed and the person who owes
• The date of the agreement
• The amount owed and what it is for
• How it will be paid: one payment by a date, or the amount and date of each installment
• Any down payment, and any interest (as a yearly rate)
• What happens if a payment is late: when it counts as late, any late fee, any notice
• Whether the balance can be paid early without a penalty
• Signatures of both sides (and of a guarantor or witness, if there is one), with the date

IOU, payment plan or promissory note?

An IOU is a short, signed note that one person owes another a sum of money. On its own it often says little about when or how the money will be paid back. This tool makes an IOU when you choose “Money lent” and “In one payment by a set date”.

A payment plan agreement adds the repayment schedule and the terms: how much is paid, when, what counts as late, and what happens then. It suits a loan between friends or family, a customer paying a bill over time, or a tenant catching up on rent.

A promissory note is a formal promise to pay, often used by lenders, sometimes secured by property and sometimes with its own legal rules. If you are lending a large amount, taking a car or a house as security, or lending as a business, a lawyer or the lender’s own forms are the safer choice.

Interest and late fees

You do not have to charge interest. Leave “Charge interest” unticked and the agreement is interest-free.

If you do charge interest, most states set a maximum rate, often called a usury limit, and the limit can depend on the size and kind of loan and on who is lending. For example, in Texas the maximum is 10 percent a year unless another law allows more (Texas Finance Code § 302.001), and in Florida it is the equivalent of 18 percent a year simple interest for loans up to $500,000 (Florida Statutes § 687.03). Charging more can be illegal: in Florida, rates above 25 percent are a crime (§ 687.071).

Late fees have limits too. The same Texas law lets a loan at 10 percent a year or less add a delinquency charge only on a payment at least 10 days late, of no more than 5 percent of the payment or $7.50, whichever is greater (§ 302.001(d)). Texas also allows 6 percent a year legal interest from the 30th day after an amount is due when no interest was agreed (§ 302.002).

Check the rules for your state, and keep any interest rate and late fee reasonable. This page is general information, not legal advice.

Payment plans for past-due rent

Many landlords agree to a payment plan when a tenant falls behind, because it is often quicker and cheaper than other steps. Put the plan in writing, with each month of past-due rent as its own line.

A rent plan made here always says three things: it covers only the past-due rent listed, new rent is still due on time under the lease, and signing it does not take away any right the landlord or the tenant has under the lease or the law. You can also promise not to add late fees while the tenant keeps to the plan.

Some states limit rent late fees. In Texas, for example, a late fee is allowed only if the written lease provides for it, it is reasonable, and the rent stays unpaid two full days after it is due (Texas Property Code § 92.019). Check your own state’s rules before adding a fee.

Keep a record of every payment made under the plan. A rent ledger shows each amount owed and paid with the running balance.

Tips for both sides

• Print two copies and have both sides sign each one, so each keeps an original.
• Pay in a way that leaves a record (bank transfer, check, money order). If you pay or take cash, write a receipt each time.
• Tick “Record of payments” to add lines at the bottom of the page for writing down each payment as it comes in.
• If the plan changes, write the change down and have both sides sign it.

Checked in October 2026. This page is general information, not legal or tax advice. Rules differ from state to state and change over time.

• Texas Finance Code § 302.001 and § 302.002: interest rates (Texas Legislature)
• Florida Statutes § 687.03: unlawful rates of interest (Florida Senate)
• Florida Statutes § 687.071: criminal usury (Florida Senate)
• Texas Property Code § 92.019: late fees (Texas Legislature)
• IRS Publication 550: Investment Income and Expenses (below-market loans)
• 26 U.S.C. § 7872: below-market loans (US Code, govinfo)