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Late Payment Interest Calculator

Calculate exact statutory interest and fixed compensation for overdue invoices. Generate polite, professional reminder emails with one click.

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Late Fee Calculator

£
%
£
Days Overdue0 days
Original Amount£0.00
Accrued Interest£0.00
Total Due£0.00
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Understanding Late Payment Interest

When a commercial client pays late, you often have a statutory right to claim interest and debt recovery compensation. In the UK, for example, the Late Payment of Commercial Debts (Interest) Act allows businesses to charge the Bank of England base rate plus 8%, as well as a fixed sum.

How it works

  • Statutory Interest = Debt × (Interest Rate / 365) × Days Overdue
  • Fixed Compensation = A flat fee to cover recovery costs (e.g. £40 for debts under £1,000 in the UK).

Best Practices

Before applying late fees, ensure your original invoice clearly states your payment terms and the consequences of late payment. Always send a polite reminder a few days after the due date before escalating to formal interest charges.

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Use Invoicycle to send automated email reminders and let the software follow up for you.

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