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Free UK Late Payment
Interest Calculator

Work out exactly what you're legally owed on an overdue invoice — statutory interest plus compensation, calculated instantly under UK law. Nothing you enter is ever stored.

Enter the details

£
%
Current rate as of Aug 2026 — pre-filled, but check bankofengland.co.uk if it's since changed.
Total now owed
£1,000.00
0 days overdue
Original amount£1,000.00
Statutory interest (11.75% p.a.)£0.00
Statutory compensation£40.00
Total owed£1,000.00

How this is calculated

Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses are automatically entitled to charge statutory interest on overdue B2B invoices — you don't need it written into your contract. The rate is the Bank of England base rate plus 8%, applied daily from the day after the payment was due.

On top of interest, you're also entitled to a fixed compensation fee for the cost of chasing payment: £40 for debts under £1,000, £70 for £1,000–£10,000, and £100 for anything larger.

This calculator covers commercial (B2B) debts under UK law and is provided for convenience, not legal advice — consumer debts follow different rules, and if a payment dispute is heading anywhere formal, a professional's guidance is worth getting.

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