UK Late Payment Interest Calculator
Calculate exactly what your client owes you today under the Late Payment of Commercial Debts Act 1998 — statutory interest plus the fixed compensation fee. Instant, no signup.
Your invoice details
How the calculation works
Under the Late Payment of Commercial Debts (Interest) Act 1998, you are entitled to three separate amounts on overdue B2B invoices.
Statutory interest
(Amount × 11.75%) ÷ 365 × days overdue
BoE base rate (3.75%) + statutory 8 percentage points = 11.75% per annum. Accrues daily from the day after the due date.
Fixed compensation
£40 / £70 / £100
A flat fee per overdue invoice: £40 for debts under £1,000; £70 for £1,000–£9,999; £100 for £10,000 or more. Payable once per invoice.
Reasonable recovery costs
Solicitor, court, or agency fees
If you engage a solicitor or debt collection agency to recover the debt, reasonable and proportionate costs are recoverable on top of the above under s.5A of the Act.
Stop late payments before they start
A freelance contract that explicitly cites the Late Payment Act 1998 is a deterrent. When a client’s accounts department sees the statutory rate and compensation fee written into the contract, invoices move to the top of the pile.
Contracto generates complete, UK-compliant freelance and service agreements with the Late Payment Act referenced inline — ready to send and sign in under 60 seconds.
Generate a Late Payment Act contract →Free to generate · £9 for clean PDF download
Frequently asked questions
Related resources