Free tool
Late payment interest calculator
See how much statutory interest and compensation you can add to an overdue business invoice in Ireland or the UK, then copy the wording for your reminder.
You can claim up to
€97.57
on top of the €2,150.00 invoice
- Days late
- 45
- Statutory interest10.40% a year (2.40% ECB rate + 8%), €0.61 a day
- €27.57
- Fixed compensation€40 under €1,000, €70 under €10,000, €100 above
- €70.00
Rate for debts that became late from 1 July 2026.
Wording for your reminder
Under the European Communities (Late Payment in Commercial Transactions) Regulations 2012, this invoice is now 45 days overdue and may carry statutory interest of €27.57 (10.40% a year) and fixed compensation of €70.00, a total of €97.57 on top of the €2,150.00 due.
Tired of chasing this yourself?
PaidUp sends polite reminders for you and can add this interest to the final one automatically.
Start a free trialHow it's worked out
Interest is simple interest for each day the invoice is late: amount × annual rate × days late ÷ 365. The annual rate is a central bank reference rate plus 8 percentage points, fixed for the half-year in which the invoice became late. In Ireland that is the ECB rate under the European Communities (Late Payment in Commercial Transactions) Regulations 2012. In the UK it is the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998. Fixed compensation is added once per invoice.
Questions
Who can charge late payment interest?
Any business owed money by another business or by a public body, including sole traders and freelancers. It doesn't apply to invoices to consumers. You don't need to have put it in your terms: the right comes from the law, unless your contract sets a different, fair rate.
What is the late payment interest rate in Ireland?
10.40% a year for debts that become late from 1 July 2026: the European Central Bank's main refinancing rate (2.40%) plus 8 percentage points. The rate is reset every 1 January and 1 July.
What is the late payment interest rate in the UK?
11.75% a year for debts that became late between 1 July and 31 December 2026: the Bank of England base rate on 30 June (3.75%) plus 8 percentage points.
What is the fixed compensation?
On top of interest, you can claim a fixed sum for the cost of chasing: €40 or £40 for invoices under 1,000, €70 or £70 under 10,000, and €100 or £100 for 10,000 or more. In Ireland and the UK you can also claim reasonable recovery costs beyond that.
When does interest start?
From the day after the agreed due date. If no date was agreed, from 30 days after the client received the invoice or the goods or services, whichever is later.
Should I always charge it?
It's your right, but it's a judgement call with clients you want to keep. Many businesses mention it only in the final reminder, as a firm last step before stronger action.
This calculator gives general information, not legal advice. Rates from the Department of Enterprise, Tourism and Employment and GOV.UK. Check your contract and get advice before taking legal action.