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What can you charge on a late invoice?
If a business pays you late, the law in the UK and across the EU lets you add statutory interest and a fixed recovery fee on top of what you're owed — without a clause in your contract. Work out the exact figures here, then add them to a demand in one click. Your numbers stay on your device.
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This is guidance, not legal advice. Statutory interest tracks a central-bank rate that changes — confirm the current rate before you send a demand.
How statutory late-payment charges work
For a business-to-business debt, you generally have two rights that don't need to be written into your contract:
- Statutory interest. In the UK this is 8% plus the Bank of England base rate, running from the day payment became late until it's paid. Across the EU, Directive 2011/7 sets it at at least 8 percentage points above the European Central Bank reference rate.
- Fixed recovery compensation. On top of interest, the UK lets you claim a one-off £40, £70 or £100 depending on the debt size; the EU sets a minimum of €40 per invoice. You can charge it once per payment.
interest = amount × (base rate + 8%) ÷ 365 × days overdue
gov.uk gives the worked example: a £10,000 debt paid 60 days late is £10,293.15 — the £10,000, plus £193.15 interest, plus £100 compensation. This calculator reproduces that figure exactly.
Common questions
How much interest can I legally charge on a late invoice in the UK?
For a business-to-business debt, statutory interest is 8% per year plus the Bank of England base rate, from the day the payment became late until it is paid. It applies automatically, even if your contract says nothing about interest, unless the contract sets its own substantial remedy.
Can I charge a late fee as well as interest?
Yes. On top of statutory interest you can claim a fixed recovery sum: in the UK that is £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. The EU Late Payment Directive sets a minimum of €40. You can claim it once per late payment.
When does an invoice legally count as late?
Payment is late once it passes the date agreed in your contract. If no date was agreed, the statutory default is 30 days after the customer receives the invoice or the goods or service, whichever is later. Interest starts accruing from the day after it becomes late.
Does this calculator store or send my figures?
No. Every calculation runs in your browser on your own device. Nothing is uploaded or logged, because the tool has no server. Close the tab and nothing is kept.
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Add the interest and recovery fee to a clean, itemised invoice in Billfold — in your browser, no account, nothing uploaded.
Open the invoice editor →Sources
- GOV.UK — Late commercial payments: charging interest and debt recovery (statutory interest, when payment is late).
- GOV.UK — Claim debt recovery costs on late payments (£40 / £70 / £100 fixed sums).
- Late Payment of Commercial Debts (Interest) Act 1998; EU Directive 2011/7/EU on combating late payment in commercial transactions.