Late payment interest calculator (UK & EU)
What you can lawfully charge on an overdue B2B invoice — UK statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998, and the EU Late Payment Directive rate.
United Kingdom
The statutory rate is the Bank of England base rate on the reference date (30 June / 31 December) before your invoice became overdue, plus 8 points — fixed for the whole late period, accruing daily as simple interest. Currently 11.75%.
Estimate for reference only — courts, agencies and creditors may apply different rounding or conventions. Not legal, tax, or financial advice.
B2B (and business-to-public-authority) contracts only; consumer contracts are outside the Act. You can also claim fixed compensation per invoice: £40 (debt under £1,000), £70 (£1,000–£9,999.99), or £100 (£10,000+).
European Union
Under Directive 2011/7/EU, the statutory rate is the ECB reference rate for the half-year (currently 2.4%) plus your member state's margin — at least 8 points (the floor used below; France applies +10, Germany +9). Unlike the UK, the reference re-fixes each half-year, and this calculator accrues each period at its own rate.
Estimate for reference only — courts, agencies and creditors may apply different rounding or conventions. Not legal, tax, or financial advice.
Computed at the 8-point Directive floor; if your member state applies a higher margin, your entitlement is higher. Check the national implementing law for the exact margin.