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UK late payment interest calculator

Statutory late payment interest is the simple interest a UK business can claim on an overdue invoice from another business, at 8% above the Bank of England reference rate, unless the contract sets its own remedy.

Work out statutory interest on a late B2B invoice in the UK: 8% plus the Bank of England reference rate, charged daily, plus £40, £70 or £100 compensation.

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Bank Rate was 3.75% on 31 December 2025 and on 30 June 2026, so statutory interest is 11.75% for debts that became overdue in 2026. The rate for debts overdue from 1 January 2027 depends on Bank Rate on 31 December 2026. Reviewed 30 October 2026.

For business-to-business debts only, and only where the contract does not set its own late payment remedy. It does not include debt recovery costs beyond the fixed compensation.

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Inputs

3.75% for debts that became overdue in 2026. Use 4.75% for January to June 2025 and 4.25% for July to December 2025.

Result

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Interest£96.58
Fixed compensation£100.00
Total claim£196.58
Days late30
Daily interest£3.22
Statutory rate11.75%

Statutory interest applies to business-to-business debts only, and not where the contract sets its own substantial remedy for late payment.

Debt: £10,000.00
Due date: 31 Aug 2026; overdue from 1 Sept 2026
Reference rate: 3.75% (Bank Rate on 30 Jun 2026, fixed for the life of the debt)
Statutory interest rate: 11.75% a year (8% + 3.75%), simple interest
Days late: 30 (to 30 Sept 2026)
Daily interest: £3.22 (debt × 11.75% ÷ 365)
Interest: £96.58
Fixed compensation: £100.00 (one charge per invoice: £40 under £1,000, £70 from £1,000 to £9,999.99, £100 from £10,000)
Total claim (interest + compensation): £196.58
Total including the debt: £10,196.58

Examples

£10,000, 30 days late

Overdue from 1 September 2026, so the reference rate is 3.75% and the statutory rate 11.75%. Daily interest = 10,000 × 0.1175 ÷ 365 = £3.22. 30 days = £96.58, plus £100 fixed compensation.

Small invoice

An £800 invoice paid late earns £40 of fixed compensation, plus daily interest of 800 × 0.1175 ÷ 365 = £0.26.

£5,000, 60 days late

Daily interest 5,000 × 0.1175 ÷ 365 = £1.61. 60 days = £96.58, plus £70 fixed compensation.

A debt from early 2025

Debts that became overdue between 1 January and 30 June 2025 use Bank Rate on 31 December 2024 (4.75%), so the statutory rate is 12.75%.

A debt from late 2025

Debts that became overdue between 1 July and 31 December 2025 use Bank Rate on 30 June 2025 (4.25%), so the statutory rate is 12.25%.

How to use it

  1. Enter the invoice amount, the date payment was due and the date it was paid (or today's date).
  2. Check the reference rate. It is 3.75% for debts that became overdue in 2026; change it for older debts.
  3. Read the statutory rate, daily interest, total interest and fixed compensation.
  4. Copy the result into your reminder or claim, or download or print it.

Questions

What is the statutory late payment interest rate?
8% plus the Bank of England reference rate, as simple interest. For debts that became overdue in 2026 the reference rate is 3.75%, so the rate is 11.75% a year.
Which reference rate applies to my invoice?
Bank Rate on 31 December for debts that become overdue between 1 January and 30 June, and Bank Rate on 30 June for debts that become overdue between 1 July and 31 December. The rate stays fixed for the life of that debt, even if Bank Rate changes later.
How much fixed compensation can I claim?
£40 for a debt under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. It is one charge for each invoice paid late.
How is daily interest worked out?
Debt × statutory rate ÷ 365. On £10,000 at 11.75% that is £3.22 a day, which you multiply by the number of days the payment is late.
Can I claim it from consumers?
No. Statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 applies only between businesses. It also does not apply if your contract sets its own substantial remedy for late payment.
What rate applies to debts overdue in 2027?
It depends on Bank Rate on 31 December 2026, which is not yet known. Bank Rate was 3.75% on 30 October 2026 and the next decision is due on 5 November 2026.
Is my data sent anywhere?
No. The calculation runs entirely in your browser and nothing is uploaded.

Sources

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