Late payment fee calculator
Work out statutory interest and compensation on an overdue invoice under UK commercial payment law.
UK statutory interest for late commercial payments is the Bank of England base rate plus 8%. Enter your own combined rate, or use 8% as a starting point.
Interest owed
£4.93
Statutory compensation
£40.00
Total to invoice
£794.93
How UK statutory interest works
Interest
Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can charge statutory interest on overdue invoices at the Bank of England base rate plus 8%, unless a different rate was agreed in the contract.
Fixed compensation
On top of interest, you can add a fixed sum for debt recovery costs: £40 under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more.
Not legal advice
This calculator gives an estimate for guidance only. Check the current base rate and your contract terms before invoicing a client for late fees.
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