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UK late payment interest

Late payment interest calculator for UK commercial invoices

Use this guide to understand how statutory interest is calculated on overdue B2B invoices in the UK, then use the calculator to estimate the interest, compensation, and total claim.

What the calculator estimates

The calculator estimates overdue days, daily statutory interest, accrued interest, fixed statutory compensation, and the total amount that may be claimed on an overdue commercial invoice.

It is designed for UK business-to-business debts, not consumer debts. Contract terms, payment disputes, and industry-specific rules can affect whether a claim is appropriate.

How the interest figure is calculated

The standard statutory interest formula is invoice amount multiplied by the annual statutory rate, divided by 365, then multiplied by the number of overdue days.

For this MVP calculator, the annual statutory rate is 11.75%, made up of 8% plus a Bank of England base rate of 3.75%.

What to do after calculating

After calculating the claim, go back to the /statutory-interest-calculator page and use the result as a starting point for a professional payment reminder or recovery workflow.

Keep a copy of the invoice, payment terms, due date, calculation date, and any communication with the debtor before taking further action.

FAQ

Common questions

Can I charge late payment interest in the UK?

UK businesses may be able to charge statutory interest on overdue B2B invoices under the Late Payment of Commercial Debts (Interest) Act 1998, subject to the commercial relationship and contract context.

Does the calculator apply to consumer invoices?

No. This calculator is intended for commercial debts between businesses. Consumer debts are outside its intended scope.