Late Payment Interest Calculator
Estimate statutory interest and fixed compensation on an overdue UK business-to-business invoice.
For qualifying late commercial payments, statutory interest is generally the Bank of England base rate plus 8 percentage points. Enter the Bank rate that applied during the relevant late-payment period — not necessarily today’s rate. The fixed compensation amount is shown only where a positive number of late days is entered.
Fixed compensation
The calculation also shows the standard fixed-sum compensation amount based on the invoice value: £40 for debts under £1,000, £70 for debts from £1,000 to under £10,000, and £100 for debts of £10,000 or more. The final figure remains subject to the contract and the legal circumstances of the debt.
Statutory interest does not necessarily apply where a contract provides a substantial remedy for late payment, and the rules have exceptions. One qualifying invoice can attract one fixed compensation amount; it is not a daily charge. This tool is general guidance, not legal advice. Check the relevant GOV.UK guidance or obtain professional advice for a disputed debt.
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Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.