UK Statutory Late Payment Interest Calculator – Late Payment Act 1998

UK Statutory Late Payment Interest Calculator

For freelancers, contractors and small businesses to estimate statutory interest on overdue commercial invoices in the UK.

Calculates simple interest as specified under the Late Payment of Commercial Debts (Interest) Act 1998.


About this calculator

Under UK law, statutory interest is calculated at 8% plus the official Bank of England (BoE) base rate applicable for that period.
It is updated twice yearly on 1st January and 1st July.
Interest is calculated on a simple basis, not compound.

You may also charge a fixed statutory compensation fee:
For amounts up to £999.99 – £40
Between £1,000 and £9,999.99 – £70
From £10,000 and upwards – £100

You may also claim reasonable recovery costs if they exceed these amounts.

This calculator is free to use. Once your calculation is complete, a court-ready PDF report with a full rate breakdown is available to download for £3.99.
Learn how statutory late payment interest is calculated.

To understand how statutory late payment interest is calculated read our full guide.