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Late payment calculator

If you have given a loan, you have a statutory entitlement to add interest on to any amount due after the agreed time in which payment was supposed to be made. This calculator allows you to work out whether you are entitled to statutory interest and what the amount will be.

This is also useful if you have taken out a loan, which is now overdue, and would like to know how much your creditor has the statutory right to charge you. 


Date the contract was formed*

Date the payment became overdue**

Date of payment (if the debt has been paid)***

Are you a public sector body?

 Yes     No

How many employees did you, the creditor, have at the time the payment became overdue?

How many employees did the debtor have at the time the payment became overdue?

Total invoice value (inc. VAT)





* Input the date the contract with your debtor was made. If you do not have a contract, enter the date when the agreement to buy and sell goods or services was made.

** Input the date when the payment became overdue. If you have agreed a credit period with your debtor, the date you need to enter here will be the last day of that credit period. Otherwise, the due date is either 30 days after the delivery of the goods/services or 30 days after the date of invoicing, whichever is later.

*** If you are trying to claim interest retrospectively, complete this field. If your debtor has not yet paid, you do not have to fill this in.

The calculation

If you wish to calculate the interest yourself, this is the formula you should use:

Debt x interest rate x the number of days late / 365

To calculate the daily rate of interest use this formula:

Daily rate = Debt x interest rate / 365


The interest rate which applies to your debt is identified as follows:

  • For contracts dated prior to 7 August 2002, the late payment interest rate is 8% plus the Bank of England base rate that was in place on the day the debt became overdue. To find out the Bank of England base rates, click here. This should give you access to all interest rate decisions made since 1997.

  • For contracts dated on or after 7 August 2002, the late payment interest rate is 8% plus the reference rate.
The current reference rate is 0.5%.

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