Calculate interest on an overdue business invoice.
Enter the invoice amount and how long it's been overdue to calculate statutory late-payment interest and any applicable fixed compensation. Useful when a business customer hasn't paid an invoice on time.
Worth knowing
Statutory late-payment interest generally applies to qualifying business-to-business debts under the Late Payment of Commercial Debts (Interest) Act 1998. It doesn’t normally apply when your customer is a private consumer, so most domestic jobs won’t be covered.
You may also be able to claim fixed compensation for each qualifying late invoice. The amount is £40 for debts under £1,000, £70 for debts from £1,000 to £9,999.99 and £100 for debts of £10,000 or more. This is separate from any interest due.
When a payment becomes late depends on the payment terms you agreed with the customer. Where no payment date was agreed, statutory rules determine when the debt becomes overdue, so make sure you use the correct date when entering the figures.
Statutory interest is calculated using the relevant Bank of England base rate plus 8 percentage points. The base rate can change, so check the rate that applies to the debt rather than relying on an old figure.
This calculator is a guide, not legal or financial advice. Late-payment rules have exceptions and the details matter, so check the current government guidance or speak to a professional if you’re unsure.
Get started
Less admin. More getting things done.
Start your 14-day free trial today. No card required to start.