Late Payment Interest Calculator
Under the Late Payment of Commercial Debts (Interest) Act 1998, UK businesses can charge statutory interest on overdue B2B invoices. Enter your invoice value and days overdue to see what you could recover.
Your inputs
Estimated cost
Statutory interest rate
13.0% per year
Interest accrued
£106.85
30 days at 3.5616 per day
Fixed compensation charge
£100
£100 for invoices £10,000+
Total recoverable
£206.85
Assumptions used in this calculator
- Statutory rate = Bank of England base rate + 8%, under the Late Payment of Commercial Debts (Interest) Act 1998.
- Fixed compensation: £40 (below £1,000), £70 (£1,000-£9,999), £100 (£10,000+).
- Applies to B2B transactions only. Does not apply to consumer debts.
- Interest runs from the day after the agreed payment due date.
Other Spark Finance calculators
Calculator questions
Can I actually charge statutory interest to my customers?
Yes. The Late Payment of Commercial Debts (Interest) Act 1998 gives UK businesses the legal right to charge statutory interest on overdue B2B invoices. Many businesses use it as leverage in chasing conversations rather than actually applying it to every invoice.
Does late payment interest apply to all B2B invoices?
It applies to most commercial transactions between businesses in the UK. It does not apply to consumer debts, which are covered by separate legislation.
How to get a late payment interest through Spark Finance
- 1
Complete the free calculator above to understand your estimated monthly repayment.
- 2
Click 'Check your eligibility' to start your full application in under five minutes.
- 3
Spark Finance approaches multiple lenders and presents you with competing offers to compare.
- 4
Accept your preferred offer and funds are typically released within 24-72 hours.
Learn more about a late payment interest
How to Improve Your Chances of Getting a Business Loan Approved in the UK
Apr 19, 2026 · 8 min read
What Documents Do UK Businesses Need to Apply for Finance?
Apr 18, 2026 · 6 min read
How to Fund a Management Buyout (MBO) in the UK
Apr 17, 2026 · 9 min read