Late Payment Interest Calculator (Overdue Invoices)
Enter the invoice amount, the agreed or statutory rate and the days overdue.
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Late Payment Interest Calculator (Overdue Invoices) by TheCalcTools
How the Late Payment Interest Calculator (Overdue Invoices) works
Late payment interest is usually simple interest: amount × yearly rate × days late ÷ 365. Check your contract terms and local law for the rate and any fixed compensation.
In the UK, the Late Payment of Commercial Debts (Interest) Act lets businesses claim 8% above the Bank of England base rate plus fixed compensation.
The formula
Worked example
Using the default values shown in the calculator:
| Invoice amount | $4800 |
|---|---|
| Yearly interest rate | 12.75 % |
| Days overdue | 45 |
| Fixed recovery fee (if allowed) | $0 |
- 4,800 overdue for 45 days at 12.75%: interest $75.45, $1.68 a day.
Result:
| Interest owed | $75.45 |
|---|---|
| Interest per day | $1.68 |
| Total now due | $4,875.45 |
Frequently asked questions
Can I charge interest without a clause in the contract?
In some countries yes, by statute between businesses (the UK, the EU). Elsewhere it depends on the contract and local law.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.