Interest Calculator
You can charge interest and compensation on any invoices which have been paid late or have not been paid within your agreed payment terms.
The interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ – this is 8% plus the Bank of England base rate for business-to-business transactions. You cannot claim statutory interest if there’s a different rate of interest in a contract.
This interest calculator is provided for informational and illustrative purposes only and does not constitute financial or legal advice. While we endeavour to ensure the accuracy of the tool, it should be treated as a guide. We strongly encourage businesses to perform their own independent calculations or seek professional guidance before making financial decisions or formal claims, as specific contract terms, interest rates, and compounding frequencies may vary.
Disclaimer
This interest calculator is provided for informational and illustrative purposes only and does not constitute financial or legal advice. While we endeavour to ensure the accuracy of the tool, it should be treated as a guide. We strongly encourage businesses to perform their own independent calculations or seek professional guidance before making financial decisions or formal claims, as specific contract terms, interest rates, and compounding frequencies may vary.
Using the Interest Rate Calculator
Our interest rate calculator calculates interest to the first two decimal points only. While this gives a fairly accurate figure it should be used as a guide to the amount of interest and compensation you can charge on overdue invoices.
Have an invoice which has not been paid?
If you have an invoice which has not been paid, you can contact us at the Office of the Small Business Commissioner (OSBC), as we may be able to assist you with recovering late payments.