Late payment interest calculator

UK statutory interest (Late Payment of Commercial Debts)

The Late Payment of Commercial Debts (Interest) Act 1998 applies across England, Wales, Scotland and Northern Ireland for certain commercial (business-to-business) debts. Statutory interest is 8% per year above the Bank of England base rate, calculated on a daily basis for the late period.

Fixed compensation (recovery costs)

You can also add a fixed sum once per late invoice: £40 (up to £999.99), £70 (£1,000–£9,999.99), or £100 (£10,000+).

Note

If your contract already specifies a different late payment interest rate, statutory interest may not apply. The applicable statutory rate can also change if the Bank of England base rate changes during the late period.

EU (non‑euro member states)

The EU Late Payment Directive (2011/7/EU) sets a common framework for late payment in commercial transactions. Where it applies, the creditor is generally entitled to statutory late payment interest and a minimum fixed compensation amount for recovery costs.

Key point: the reference rate is national (not the ECB MRO rate)

For EU Member States whose currency is not the euro, the Directive defines the “reference rate” as the equivalent rate set by that country’s national central bank. So you cannot automatically use the ECB MRO rate outside the euro area—each country’s statutory calculation must be tied to its own national reference-rate mechanism and national implementing legislation.

What this means in practice

• The “base” reference rate is country-specific (set/published nationally).
• The statutory margin and any fixed compensation are implemented in national law (and can have local nuances).
• Rates may change over time, so longer overdue periods often need to be calculated in segments.

Countries in this category

Denmark, Sweden, Poland, Czechia, Hungary and Romania are EU Member States outside the euro area (and therefore use national reference‑rate mechanisms under the Directive’s definition).

Useful sources (for verification)

For each country, the most reliable starting points are:

• The national central bank page that publishes the relevant policy/reference rate series.
• The national statute/guidance implementing the Directive.

Country sources

🌍 Non‑EU Europe

Outside the EU, late payment interest is governed by national law, and the applicable rate (and any fixed compensation) can work very differently from the EU Directive model. This section summarises the main statutory approach in selected non‑EU jurisdictions.

🇳🇴 Norway (calculator available)

Norway sets statutory late payment interest (“forsinkelsesrente”) and a standard compensation amount on a half‑yearly basis, effective from 1 January and 1 July. The current tool applies those published rates and shows the standard compensation separately.

Useful source: 🔗 Finanstilsynet / Norwegian Financial Supervisory Authority

🇨🇭 Switzerland (calculator available)

Switzerland is not in the EU/EEA. Under Swiss law, default interest on monetary obligations is generally 5% per annum. This calculator applies a fixed 5% rate; if your contract uses another rate, use the custom option. The Swiss approach is a different structure from “reference rate + margin”, and it is typically driven by the Swiss Code of Obligations (Arts. 104–105).

Useful source: 🔗 Swiss Code of Obligations, Art. 104

🇺🇦 Ukraine

Ukraine uses its own statutory approach. A common framework for monetary obligations in delay is found in Article 625 of the Civil Code of Ukraine, which (in general terms) provides for compensation tied to the inflation index for the delay period and 3% per annum on the overdue amount, unless a different rate is set by contract or law.

🇹🇷 Türkiye

In Türkiye, there is a specific commercial framework for late payment in the delivery of goods and provision of services under Article 1530 of the Turkish Commercial Code. The Central Bank of the Republic of Türkiye publishes the default interest rate and a minimum compensation amount for recovery costs used in that context. Separately, Türkiye also has a broader “legal/default interest” regime (Law No. 3095) that may be relevant in non‑commercial or different obligation types, and the applicable rate can change over time by official decision.

Useful source: 🔗 CBRT table for TCC Art. 1530 (default interest + minimum compensation)

Orgalim terms

Orgalim standard terms are widely used for B2B supply and installation contracts in the mechanical, electrical, electronic, and technology sectors. This calculator applies the late‑payment mechanism used across S2012, S2022, SI14, and SI24.

Late payment interest under Orgalim terms:

• 8 percentage points above the ECB main refinancing operations (MRO) rate
• + 1% flat recovery cost compensation on the overdue amount

The MRO rate changes over time; this tool applies the correct historical periods and gives a full breakdown from the due date. Compared with the EU directive, Orgalim uses a percentage recovery cost instead of a fixed EUR 40 amount.

United States

There is no single federal statutory late payment interest rate for ordinary commercial invoices.

The applicable interest (if any) typically depends on:

• the contract terms (what the parties agreed), and
• state law rules that may apply when the contract is silent.

Practical approach

If you want predictable late payment interest in the US, the safest approach is to include clear payment and interest terms in your contract (rate, when interest starts, compounding or simple interest, and any fees).

Note to our good friends in the United States

This site currently focuses on Europe. This section is purely for informational purposes. If you have any ideas for additional content, we'd love to hear from you!

Canada

There is no single nationwide statutory late payment interest rate for ordinary commercial invoices.

The applicable interest (if any) typically depends on:

• the contract terms (what the parties agreed), and
• provincial law rules that may apply when the contract is silent.

Practical approach

If you want predictable late payment interest in Canada, include clear payment and interest terms in your contract (rate, when interest starts, compounding or simple interest, and any fees).

Note to our good friends in Canada

This site currently focuses on Europe. This section is purely for informational purposes. If you have any ideas for additional content, we'd love to hear from you!

About this tool

Latepaymentinterest.com is a free calculator for estimating statutory late payment interest on overdue invoices. It is designed to produce a clear, audit-friendly breakdown — including rate changes over time — so you can understand what interest accrues and explain the calculation to the other side.

What it does

• Calculates interest on a principal amount between a due date and an end date (often today).
• Splits the calculation into periods when the applicable statutory rate changes.
• Adds fixed compensation amounts where the relevant rules provide for it (shown separately).
• Lets you adjust calculation assumptions (for example, day-count convention and whether interest starts on the due date inclusive).

What it does not do

• It does not determine whether you are legally entitled to interest in your specific case. Entitlement can depend on the contract terms, the governing law, the parties (e.g., business vs consumer), and any applicable statutory exceptions.
• It does not provide debt collection services or legal advice.

Sources and accuracy

Where possible, the tool uses publicly available official sources (central bank rates and statutory references). The sources are linked in the guides for each regime. You should always verify the applicable rules against your contract and the governing law.

Privacy

Calculations are performed in your browser. We do not store the amounts, dates, or other inputs you enter into the calculator.

Our server may keep standard access logs for security and reliability. If you have any questions concerning privacy and personal data, please contact us.

Comments, ideas or suggestions?

Email: apps@sons.no