Free tool
Work out the statutory interest and fixed compensation you can claim on an overdue commercial invoice — instantly, in your browser, with no signup. Based on the Late Payment of Commercial Debts (Interest) Act 1998.
Use the BoE base rate in force on the day the payment became late — check bankofengland.co.uk.
Enter your invoice amount and how many days it is overdue to calculate the statutory interest and compensation you can claim.
When a business customer pays a commercial invoice late, UK law lets you charge statutory interest on the unpaid amount. For business-to-business debts that rate is 8% per year plus the Bank of England base rate in force on the day the payment became late.
The calculation is:
On top of the interest you can also claim a one-off fixed compensation per invoice to cover your recovery costs:
This tool is for commercial (B2B) debts. Debts owed by consumers are governed by different rules, so do not use these figures for them. The result is an estimate to help you chase payment — it is not legal advice, and your contract may set a different agreed remedy.
Want the full breakdown, including how to add interest to an invoice and word a reminder? Read the full guide to charging late payment interest and fees in the UK →
For commercial (business-to-business) debts in the UK, statutory interest is 8% per year plus the Bank of England base rate in force on the day the payment became late. You can charge this on overdue invoices unless your contract sets a different, substantial remedy.
Multiply the unpaid invoice amount by the annual rate (8% + base rate), divide by 365 to get the daily interest, then multiply by the number of days the payment is overdue. For example, on a £1,000 invoice at a 12.75% rate, daily interest is about £0.35, so 30 days overdue is roughly £10.48.
On top of interest you can claim a fixed sum per invoice: £40 for debts under £1,000, £70 for debts of £1,000 to £9,999.99, and £100 for debts of £10,000 or more.
No. The statutory interest and compensation calculated here apply to commercial (B2B) debts under the Late Payment of Commercial Debts (Interest) Act 1998. Debts owed by consumers are governed by different rules, so this tool should not be used for them.
Create a professional invoice — and chase overdue ones with the interest above — in seconds. Free, no signup required.
Create a free invoice