UK Late Payment Interest Calculator
for Business Invoices
Use our free calculator to work out statutory interest and fixed compensation on an overdue B2B invoice under the
Late Payment of Commercial Debts (Interest) Act 1998.
If a client hasn't paid your invoice on time, you may be entitled to claim statutory interest, fixed compensation and, in some circumstances, reasonable recovery costs.
Enter the invoice amount and relevant dates below to calculate what may be due.
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.
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For qualifying business to business debts, the Late Payment of Commercial Debts (Interest) Act 1998 allows statutory interest to be charged at 8% above the relevant Bank of England base rate.
You may also be entitled to fixed compensation of £40, £70 or £100 depending on the value of the debt.
The calculator above works out the statutory interest and compensation that may apply to your overdue invoice.
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 managing your sales ledger is taking up too much of your time, INcharge can manage the whole process for you, from invoicing and customer queries through to credit control and payment reconciliation.