Late Payment Interest Calculator
Work out the interest and compensation you can claim on a late invoice: UK statutory interest at 8% over the Bank of England rate with £40 to £100 compensation, the EU minimum of 8 points over the ECB rate, your contract rate or a monthly late fee. Get the interest per day and wording for the invoice. Free.
Enter the amount and the date the invoice was due, choose the rule, and add the payment date if it has been paid; otherwise interest runs to today. The result updates as you type. Print it or copy the wording into your late payment invoice.
Late payment interest example (UK)
An invoice for £12,000 was due on 31 May 2026 and paid on 28 September 2026, 120 days late. The Bank Rate on 31 December 2025 was 3.75%, so statutory interest is 11.75% a year.
| Step | Amount |
|---|---|
| Interest per day (£12,000 × 11.75% ÷ 365) | £3.86 |
| Interest for 120 days | £463.56 |
| Fixed compensation (£10,000 or more) | £100.00 |
| Total to claim | £12,563.56 |
UK and EU reference rates
| Half-year | UK rate | EU minimum |
|---|---|---|
| Jan–Jun 2025 | 12.75% | 11.15% |
| Jul–Dec 2025 | 12.25% | 10.15% |
| Jan–Jun 2026 | 11.75% | 10.15% |
| Jul–Dec 2026 | 11.75% | 10.4% |
The UK rate is 8% over the Bank Rate on 31 December or 30 June and applies to debts that became overdue in that half-year, for the whole delay. The EU minimum is 8 points over the ECB main refinancing rate on 1 January or 1 July and changes each half-year while the debt is unpaid.
How to charge interest on a late invoice
Put your late payment terms on every invoice and quote: the due date, the interest rate and any fee. When a payment is late, send a reminder first, then a new invoice for the interest and compensation with the wording from this calculator. Between businesses in the UK and the EU you can claim the statutory rate even if the contract says nothing; if the contract sets a rate, that rate applies instead.
Frequently asked questions
How is late payment interest calculated?
Multiply the unpaid amount by the yearly interest rate and the number of days late, then divide by 365. On a £12,000 invoice at 11.75% a year, interest is about £3.86 a day, so 120 days late comes to £463.56. Interest is simple: it is not added to the debt to earn more interest.
What is the statutory interest rate for late payment in the UK?
Between businesses it is 8% plus the Bank of England Bank Rate. The Bank Rate used is the one in force on 31 December or 30 June just before the debt became overdue, and it stays fixed for the whole delay. For a debt that became overdue in the second half of 2026 the rate is 11.75%.
How much compensation can I claim for a late payment in the UK?
On top of interest you can claim a fixed sum for the cost of recovering the debt: £40 for debts under £1,000, £70 from £1,000 to £9,999.99, and £100 for £10,000 or more. You cannot claim statutory interest or compensation if your contract sets a different interest rate for late payment.
What is the late payment interest rate in the EU?
The Late Payment Directive sets a minimum of 8 points over the European Central Bank main refinancing rate, set for each half-year on 1 January and 1 July, plus at least €40 in compensation. Countries may set higher rates, for example Germany charges 9 points over its base rate between businesses.
What late fee can I charge on an invoice in the US?
There is no federal rule: the late fee is what your contract or invoice terms say, within your state’s limits on interest. A common term is 1.5% a month, which is 18% a year. Put the late fee in your payment terms before the work starts, and apply it consistently.
Is what I type stored or sent anywhere?
No. The calculation runs in your browser and the inputs are saved only in this browser so you can come back to them. Nothing you type is sent to SalesBond or anyone else. Click Start over to clear it.
Related tools: invoice generator, quote generator, CAC calculator. More on sales and running a sales team on the SalesBond blog and the home page.
Official sources
- Late Payment of Commercial Debts (Interest) Act 1998 — statutory interest and fixed compensation in the UK.
- Bank of England: Bank Rate history — the reference rate for UK statutory interest.
- Directive 2011/7/EU on combating late payment — the EU minimum rate and €40 compensation.
- European Central Bank: key interest rates — the main refinancing rate used in the EU.
Updated on Nov 6, 2026. This calculator is for information only and is not tax, legal or payroll advice. Rates are the Bank of England and ECB rates published up to the update date. The rules apply to payments between businesses; a contract rate replaces them, and national rules in the EU can be higher. Not legal advice.
