Late Payment Interest Calculator
Interest on an overdue invoice, the daily rate and the total now due.
Results
Interest
36.99
Total now due
2576.99
Interest per day
0.8219
Percentage
3.079
%
What this tool does
Commercial late payment interest and any fixed recovery compensation are set by national law and are usually tied to a central bank reference rate that changes periodically — enter the rate and fixed amount that apply to your contract and country rather than assuming the defaults.
Formula
interest = value × rate ÷ 365 × days late
Variables
| Symbol | Meaning | Unit |
|---|---|---|
am | Invoice amount | — |
ar | Annual interest rate | % |
dl | Days overdue | — |
fx | Fixed recovery compensation | — |
IN | Interest | — |
TD | Total now due | — |
DR | Interest per day | — |
PC | Percentage | % |
Worked example
- Invoice amount2500
- Annual interest rate12 %
- Days overdue45
- Fixed recovery compensation40
- Interest36.99
- Total now due2576.99
- Interest per day0.8219
- Percentage3.079 %
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- For work that must comply with a standard or be signed off, check the result against the applicable code and have it reviewed by a qualified engineer.
- Tax rates and rounding rules differ between countries and sometimes between regions. Use the rate that applies to your invoice.