Free Late Payment Interest Calculator
Find out exactly how much you can claim on an overdue B2B invoice under UK law.
If a client has not paid on time, UK law gives you the right to claim more than just the invoice amount. The Late Payment of Commercial Debts (Interest) Act 1998 entitles you to statutory interest, fixed compensation, and in some cases reasonable recovery costs on top.
This calculator shows you exactly what you can claim. Enter your invoice amount, the date payment was due, and today's date. That is all it needs.
Late Payment Calculator
Calculate statutory interest and compensation under the Late Payment of Commercial Debts Act 1998
You may also be entitled to claim reasonable costs of recovering the debt where these exceed the fixed compensation amount. This varies by situation and is not included in the figure above. Speak to a commercial solicitor if you intend to pursue this element.
For B2B invoices only. Interest is calculated as: invoice amount × statutory rate × (days ÷ 365). Statutory interest cannot be claimed if a different rate is already specified in your contract. This calculator is provided for guidance only and does not constitute legal advice.
Want the ready-to-use invoice payment terms wording to go with this?
Get the template →Knowing what you can claim is one thing.
Getting paid is another.
If you're regularly dealing with late invoices, the problem is often the process rather than the legislation. Consistent follow up, dealing with queries quickly and knowing when to take firmer action can prevent overdue invoices from becoming serious debts.
The INcharge Interest Guide gives you ready to use wording for your invoices, so your position on late payment interest is clear from the outset.
The Credit Control Foundations Kit gives you the tools to manage credit control yourself, including professional templates, follow-up scripts and workflow guidance.
And if chasing invoices is taking up too much of your time, INcharge can manage your credit control for you.
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