Daily, simple interest
Amount × yearly rate ÷ 365 = interest per day, times the days since the due date. Only the Netherlands adds unpaid interest to the debt each year.
Free tool · no signup · rates checked 27 Sep 2026
Late payment interest calculator
A late business invoice can legally earn interest plus a fixed fee. For July–December 2026: UK 11.75% a year + £40 to £100, euro area at least 10.4% + €40, Germany 10.52%, France 12.4% and Netherlands 10.4%. In the US, it’s the rate in your terms or your state’s legal rate, such as 9% in New York. Enter your invoice to see the exact amount, the working, and a polite line for your final reminder.
ECB main refinancing rate + at least 8 percentage points. EU Late Payment Directive (2011/7/EU).
You can add
€61.37Days late
30
Interest
€21.37
10.4% a year · €0.71 a day
Fixed fee
€40.00
How it adds up
3 Oct 2026 – 1 Nov 202630 days at 10.4% a year
€21.37
Fixed compensation€40 per late invoice, plus reasonable recovery costs above that
€40.00
Total you can add
€61.37
The ECB rate on 1 January applies to January–June, and the rate on 1 July to July–December.
A line for your final reminder
Invoice #1042 is now 30 days overdue. Under the EU Late Payment Directive (2011/7/EU), late-payment interest of €21.37 (10.4% a year) and a fixed recovery fee of €40.00 can now be added. I’m happy to waive this if the invoice is paid this week.Business-to-business invoices only. A rate agreed in your contract replaces these. General information, not legal advice.
Rather not chase at all?
Babara sends polite, escalating reminders for you, can mention this interest for you, and stops the moment they pay.
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Rules, rates and history for your country
Each page shows how the rate is set, every half-year since 2023, and what to watch out for.
In plain words
How late payment interest works
Rates move twice a year
Euro-area rates reset on 1 January and 1 July, so long debts span several rates. In the UK, the rate is fixed when the debt becomes late.
Plus a fixed fee
Each late invoice adds €40 in the euro area. In the UK it’s £40 under £1,000, £70 up to £9,999.99 and £100 above.
Use it kindly
Mentioning it in a final reminder often gets things moving, and offering to waive it keeps the relationship warm. Or write the reminder here.
Before you start
Good questions
Can I charge interest on a late invoice?
Yes, for business-to-business invoices in the UK and the EU the law lets you add interest and a fixed fee once an invoice is late, unless your contract sets different terms. For July–December 2026 the UK rate is 11.75% a year and the euro-area minimum is 10.4% a year.
Can I charge late payment interest in the US?
There is no national rule for business invoices. You can charge the interest or late fee your client agreed to in your contract or invoice terms, within your state’s limits. With nothing agreed, each state sets a legal rate for overdue contract debts, for example 9% in New York, 10% in California and 6% in Texas (from the 30th day).
What about Canada and Australia?
Neither has a general statutory rate for late business invoices. Interest is owed when your terms set it, or when a court awards it. In Canada, a monthly rate must also be stated as a yearly rate, or only 5% a year can be recovered. Use “My own contract rate” in the calculator.
What is the late payment interest rate in the EU?
At least the ECB main refinancing rate plus 8 percentage points, recalculated every half-year. For July–December 2026 that is 10.4% a year. Germany adds 9 points (10.52%), France 10 points (12.4%), and the Netherlands 8 points with yearly compounding (10.4%).
What is the statutory interest rate for late payment in the UK?
8% plus the Bank of England base rate, fixed for each debt at the rate in force on 30 June or 31 December before it became late. For debts that became late in July–December 2026 that is 11.75% a year, plus a fixed £40, £70 or £100.
How do I calculate late payment interest?
Multiply the invoice amount by the yearly rate and divide by 365 to get the daily interest, then multiply by the days since the due date. Where the rate changes every half-year, work out each half-year separately. Add the fixed compensation on top.
Does this apply to invoices sent to consumers?
No. These rules cover business-to-business and public-sector invoices. Invoices to private individuals follow consumer rules, which differ by country.
Should I actually charge it?
Often the best use is as a firm, polite line in a final reminder: it shows you know your rights without starting a fight. Many freelancers waive it once the client pays. This is general information, not legal advice.
Consider the awkward part handled
Never calculate interest again
Babara chases late invoices for you, politely and on schedule, and can mention the interest for you in the final reminder.
Start freeYour clients won’t know what hit them. (A very polite email.) Free for your first 3 invoices.