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UK Late-Payment Interest Calculator

Estimate simple statutory interest on an overdue business-to-business payment and the applicable fixed recovery-cost amount.

Source: GOV.UK Late Commercial Payments (opens in a new tab)
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HOW IT WORKS

How the UK Late-Payment Interest Calculator works

1

Enter the overdue debt

Add the unpaid invoice amount plus the due date and the payment or calculation date.

2

Check the reference rate

The statutory rate is normally the Bank of England reference rate for the relevant six-month period plus 8 percentage points.

3

See interest and recovery costs

The calculator applies simple daily interest and can show the fixed £40, £70 or £100 recovery amount for qualifying commercial debts.

COMMON QUESTIONS

Frequently asked questions

What statutory interest rate is used?

For qualifying late commercial payments the GOV.UK guidance states 8 percentage points above the relevant Bank of England reference rate. The rate field is editable because the applicable reference rate depends on when the debt became late.

Does this apply to every overdue invoice?

No. The statutory commercial-debt rules have conditions and may not apply where a contract provides a different substantial remedy. Check the contract and official guidance.

What are the fixed recovery costs?

Current GOV.UK guidance lists £40 for debts below £1,000, £70 for debts from £1,000 to £9,999.99 and £100 for debts of £10,000 or more.

Is the interest compounded?

No. This calculator uses simple interest based on debt × annual rate × days late ÷ 365.

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Source information

Calculation rules or data are based on GOV.UK Late Commercial Payments (opens in a new tab) where applicable. Always check the linked official guidance for unusual or high-stakes circumstances.