Free tool, any country
Late payment interest calculator
See what a late-paying business client owes you in interest and compensation, under UK law, EU law or the rate in your own contract, then copy a claim letter to send them.
Pigee Invoice works this out for you automatically when an invoice goes overdue, using the rules for your country. See how.
How the calculation works
Late-payment interest is simple interest: invoice amount × annual rate ÷ 365 × days late.
United Kingdom: the rate is the Bank of England base rate on 30 June (for debts falling due July to December) or 31 December (January to June), plus 8 points. Fixed compensation is £40, £70 or £100 per invoice depending on its size, and you can also claim reasonable recovery costs above that.
Euro area: the EU Late Payment Directive sets at least 8 points above the ECB reference rate for the half-year, plus at least €40 compensation per invoice. Each country writes this into its own law, and some go further (Germany uses 9 points).
Everywhere else: most countries, including the US, Canada, Australia, India, Nigeria, Kenya and South Africa, have no automatic statutory rate for business invoices. You can charge the interest or late fee set out in your contract or invoice terms, up to any legal maximum. Pigee Invoice lets you set that rate once and adds it to reminders for you.
General information, not legal advice. Rules change; check the law in your country before claiming.
Questions people ask
How much interest can I charge on a late invoice?
It depends on where your business is. In the UK, businesses can claim simple interest at 8 points above the Bank of England reference rate (11.75% a year for 1 July to 31 December 2026). In euro-area countries, the EU Late Payment Directive allows at least 8 points above the ECB reference rate (10.4% a year for 1 July to 31 December 2026; Germany adds 9 points). In most other countries, including the US, Canada, Australia, India and Nigeria, you can charge the late-payment interest agreed in your contract or terms.
What fixed compensation can I claim?
In the UK: £40 for debts under £1,000, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more, per invoice. In the EU: at least €40 per invoice (Ireland uses €40, €70 and €100 by size). Both come on top of interest. Elsewhere, only what your contract provides.
Does this apply to consumers?
No. Statutory late-payment interest in the UK and EU applies to business-to-business contracts, not invoices to consumers.
When does interest start?
From the day after the agreed due date. In the UK and EU, if no date was agreed, it starts 30 days after the customer received the invoice or the goods or services, whichever is later.
My country is not the UK or EU. Can I still charge interest?
Usually, yes, if your contract or payment terms say so. Choose "Anywhere else" and enter the annual rate from your terms. Check any legal maximum rate in your country first.
Send your next invoice in two minutes.
Free plan, no card needed. Upgrade only when getting paid faster is worth it.
Create your free account