Resources · UK commercial debt recovery
Late Payment Interest Calculator UK
Estimate statutory late payment interest on overdue commercial invoices, including fixed compensation under the 1998 Act for late invoices.
Calculate statutory interest and compensation
Enter a valid invoice amount greater than 0.
What statutory interest is
For qualifying commercial debts, interest is usually simple interest at 8% above the relevant reference rate, accruing from the date payment becomes late.
When the Act applies
It commonly applies to business-to-business contracts for goods or services. It typically does not apply to consumer transactions.
When businesses can claim
A business creditor can usually claim once the invoice is overdue under agreed payment terms, or applicable statutory default terms.
Common limitations and caveats
Contract wording, partial payments, set-off arguments, and invoice disputes can alter outcomes. Treat this as an estimate, not legal advice.
Frequently asked questions
Usually no. This tool is designed for commercial debts under the Late Payment of Commercial Debts (Interest) Act 1998. Consumer debts are governed by different legal rules.
Need the legal wording as well as the numbers?
Read our commercial debt recovery guide for practical pre-action strategy, including late payment letter before action guidance.