Late Payment Interest Calculator

Chasing up the late payment of invoices is a chore faced by most small businesses. Unfortunately it is all too common for clients and customers to delay payment for as long as possible.

The Late Payment Of Commercial Debts (Interest) Act 1988 allows any business to charge statutory compensation and interest for the late payment of commercial debts.

To use the Late Payment Interest Calculator you simply need to enter the date of the invoice, the payment terms, the outstanding payment amount and the Bank of England base rate.

Interest is then calculated on a daily basis using the BoE base rate plus a statutory 8%.

Compensation varies based on the outstanding invoice debt and will be either £40, £70 or £100.

Our Late Payment Interest Calculator calculates everything for you and you can then copy the results and paste them in to an email to your customer, detailing how much they owe and the daily interest they are accruing by delaying payment.