Late payment interest calculator (UK)
Work out the statutory interest and fixed compensation you can claim when another business pays you late, under the Late Payment of Commercial Debts (Interest) Act 1998. The result updates as you type.
Nothing you type here is stored on our servers or logged.
Business to business only: statutory interest is for late payments between businesses, and you cannot claim it if your contract sets a different rate of interest. Read the GOV.UK guidance.
Fill in the fields to see the result.
How it is worked out
- Statutory interest is 8% a year plus the Bank of England base rate.
- The base rate used is the one in force on 31 December, for interest that starts to run between 1 January and 30 June, or on 30 June, for interest that starts to run between 1 July and 31 December. So the rate is set by when interest starts to run.
- The yearly amount divided by 365 gives the daily amount. This calculator counts interest from the day after the due date to the payment date.
- Fixed compensation for the cost of recovering the debt is £40 for a debt up to £999.99, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more. You can charge it once for each payment.
| Interest starting from | Base rate | Statutory rate |
|---|---|---|
| 1 Jul 2026 | 3.75% | 11.75% |
| 1 Jan 2026 | 3.75% | 11.75% |
| 1 Jul 2025 | 4.25% | 12.25% |
| 1 Jan 2025 | 4.75% | 12.75% |
Sources
Last checked 9 November 2026.
- GOV.UK: charging interest on a commercial debt
- GOV.UK: claiming debt recovery costs
- The Late Payment of Commercial Debts (Rate of Interest) (No. 3) Order 2002, article 4
- Bank of England: Bank Rate history
This is general information, not legal or tax advice.
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