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⏰ Late-Payment Interest Calculator — Statutory Rates & Recovery Fees
Country statutory rates (official EU H2-2026 table) or ECB + 8pp, plus the €40 recovery compensation on overdue B2B invoices — and a ready-to-send demand letter. Instant, private, free.
🔒 100% Client-Side Confidentiality: All interest and compensation math runs locally inside your browser. No invoice amounts, client details, payment terms, or overdue values are logged or sent to remote servers.
How to Calculate Interest and Charges on Overdue Invoices
Cash flow stability is essential for small businesses and freelancers. When clients pay past agreed terms, statutory regulations let creditors charge daily interest plus fixed recovery fees. With this tool:
- Enter the overdue amount in euros (the unpaid principal).
- Enter days late counted from the day after the due date — or pick the due date (and payment date) and the tool counts the days automatically.
- Pick your country to apply its official statutory rate for the second half of 2026 (European Commission table), or use the EU-minimum mode (ECB rate in force on 1 January or 1 July plus 8pp) with the half-year picker. Manual override stays available.
- Calculate: instant statutory rate (ECB + 8pp), interest due, and the €40 recovery-fee reference — then quote it on your reminder, ideally generated with the invoice generator.
Statutory Late-Payment Rates by Country (Second Half of 2026)
The Directive 2011/7/EU minimum is the ECB main refinancing rate in force on 1 July (2.40% for the second half of 2026) plus 8 percentage points — 10.40% per year. Many Member States legislate a higher rate, or base it on their own central-bank reference rather than the ECB. The table below is the European Commission's published statutory table for 1 July – 31 December 2026 (Your Europe portal, checked 19 October 2026). Pick your country in the calculator above to charge the correct figure.
| EU country | Statutory rate (H2 2026) |
|---|---|
| Austria | 10.73% |
| Belgium | 10.50% |
| Bulgaria | 10.15% |
| Croatia | 10.15% |
| Cyprus | 10.15% |
| Czechia | 11.75% |
| Denmark | 10.00% |
| Estonia | 10.40% |
| Finland | 10.50% |
| France | 12.40% |
| Germany | 10.52% |
| Greece | 10.15% |
| Hungary | 14.00% |
| Ireland | 10.40% |
| Italy | 10.15% |
| Latvia | 10.40% |
| Lithuania | 10.15% |
| Luxembourg | 10.15% |
| Malta | 10.40% |
| Netherlands | 10.15% |
| Poland — health sector | 11.75% |
| Poland — other public sectors | 13.75% |
| Portugal | 10.15% |
| Romania | 14.50% |
| Slovakia | 10.15% |
| Slovenia | 10.40% |
| Spain | 10.40% |
| Sweden | 10.00% |
What you can claim on top of the interest
EU law entitles the creditor to a flat-rate compensation of at least €40 per late invoice (Article 7), without proof of loss — national transpositions may set a higher amount, and you can claim reasonable recovery costs beyond €40 if actual costs were higher. Interest is charged on the gross invoice amount including VAT, but no VAT is charged on the interest itself. Statutory interest runs automatically from the day after the due date without any reminder; if no payment period was agreed, it starts 30 calendar days after the client received the invoice.
Cross-border debts and demand letters
For cross-border contracts, if the parties chose no governing law, the rules of the country where the creditor is habitually resident apply — so a German creditor charging a French client uses the German statutory regime. Once you have the figures, use the Download demand letter button in the calculator to generate a ready-to-send letter stating the principal, the statutory rate applied, the interest and the €40 compensation. For UK debts, the UK base-rate + 8% regime and the £40/£70/£100 compensation scale apply instead.
Statutory Late-Payment Rates by Country (Second Half of 2026)
The Directive 2011/7/EU minimum is the ECB main refinancing rate in force on 1 July (2.40% for the second half of 2026) plus 8 percentage points — 10.40% per year. Many Member States legislate a higher rate, or base it on their own central-bank reference rather than the ECB. The table below is the European Commission's published statutory table for 1 July – 31 December 2026 (Your Europe portal, checked 19 October 2026). Pick your country in the calculator above to charge the correct figure.
| EU country | Statutory rate (H2 2026) |
|---|---|
| Austria | 10.73% |
| Belgium | 10.50% |
| Bulgaria | 10.15% |
| Croatia | 10.15% |
| Cyprus | 10.15% |
| Czechia | 11.75% |
| Denmark | 10.00% |
| Estonia | 10.40% |
| Finland | 10.50% |
| France | 12.40% |
| Germany | 10.52% |
| Greece | 10.15% |
| Hungary | 14.00% |
| Ireland | 10.40% |
| Italy | 10.15% |
| Latvia | 10.40% |
| Lithuania | 10.15% |
| Luxembourg | 10.15% |
| Malta | 10.40% |
| Netherlands | 10.15% |
| Poland — health sector | 11.75% |
| Poland — other public sectors | 13.75% |
| Portugal | 10.15% |
| Romania | 14.50% |
| Slovakia | 10.15% |
| Slovenia | 10.40% |
| Spain | 10.40% |
| Sweden | 10.00% |
What you can claim on top of the interest
EU law entitles the creditor to a flat-rate compensation of at least €40 per late invoice (Article 7), without proof of loss — national transpositions may set a higher amount, and you can claim reasonable recovery costs beyond €40 if actual costs were higher. Interest is charged on the gross invoice amount including VAT, but no VAT is charged on the interest itself. Statutory interest runs automatically from the day after the due date without any reminder; if no payment period was agreed, it starts 30 calendar days after the client received the invoice.
Cross-border debts and demand letters
For cross-border contracts, if the parties chose no governing law, the rules of the country where the creditor is habitually resident apply — so a German creditor charging a French client uses the German statutory regime. Once you have the figures, use the Download demand letter button in the calculator to generate a ready-to-send letter stating the principal, the statutory rate applied, the interest and the €40 compensation. For UK debts, the UK base-rate + 8% regime and the £40/£70/£100 compensation scale apply instead.
Simple Late Payment Interest Formula
Late payment interest accrues daily on a simple-interest basis:
Daily Interest = (Invoice Amount × Annual Rate) / 365
Total Interest Due = Daily Interest × Overdue Days
Example: A €10,000 invoice 45 days late at a 12.25% statutory rate (4.25% base + 8pp margin):
- Annual interest:
€10,000 × 0.1225 = €1,225.00 - Daily interest:
€1,225.00 / 365 = €3.356 per day - Total for 45 days:
€3.356 × 45 = €151.02— plus the €40 recovery fee.
Statutory Late Payment Regulations by Region
Different jurisdictions protect SMEs from cash-flow bottlenecks with specific commercial late-payment laws:
| Jurisdiction / Framework | Standard Payment Term | Statutory Interest Formula | Fixed Recovery Allowance |
|---|---|---|---|
| European Union (Directive 2011/7/EU) | 30 days (max 60 by agreement) | ECB reference rate + 8.00pp | Fixed minimum €40 per overdue invoice |
| United Kingdom (Commercial Debts Act) | 30 days (unless agreed otherwise) | Bank of England base rate + 8.00% | Tiered: £40 (<£1k), £70 (£1k–£10k), £100 (>£10k) |
| United States (Prompt Payment Act / state laws) | 30 days for federal contracts | US Treasury prompt-payment rate (semi-annual) | No fixed statutory fee; contract/state rules apply |
What ECB rate should I enter and where do I find the current one?
You usually do not need to enter it manually — the tool pre-fills the statutory reference rate for the half-year selected below and shows the rate date next to the field. If you are offline or the ECB API is unreachable, the illustrative default stays in place: check the current rate on the ECB website and type it in. Either way, pick the due date (and payment date) and the tool counts the days late for you — the statutory rate is always the ECB rate plus 8 percentage points.
How do UK late payment fees differ from the EU €40 rule?
The EU grants a flat minimum of €40 per overdue invoice under Directive 2011/7/EU. The UK uses a tiered fee under the Late Payment of Commercial Debts Act: £40 for debts up to £1,000, £70 for £1,001–£10,000, and £100 above £10,000 — plus Bank of England base rate plus 8% interest. Both systems allow reasonable additional recovery costs on top.
What should a late payment reminder letter include?
State the invoice number, original due date, days overdue, principal amount, the statutory rate applied, interest accrued to date, and the fixed recovery fee. Generate the reminder from the same numbers you calculated here, ideally from a revised statement built with the invoice generator, and set a clear 7-day payment deadline.
Last verified: 25 September 2026. Sources: EU Commission VAT rates, ECB euro reference rates and national tax authorities. Confirm with your local authority before filing.
Official sources: EU Late Payment Directive 2011/7/EU · ECB official rates
Understanding Statutory Compensation for Recovery Costs
Under UK and EU provisions, creditors collect daily interest plus an automatic fixed sum for internal administrative and recovery efforts.
UK Statutory Compensation Scale
- Debts under £1,000: fixed £40 charge
- Debts from £1,000 to £9,999.99: fixed £70 charge
- Debts of £10,000 or higher: fixed £100 charge
If reasonable recovery costs (e.g. a collection agency) exceed the fixed allowance, you may claim the difference under current UK commercial law.
Best Practices to Avoid Overdue Invoices and Secure Prompt Payment
Enforcing interest corrects behavior, but proactive credit control prevents delays upfront:
- Set clear due dates: state terms (e.g. "Net 30", "due 31 March 2026") — never ambiguous "due upon receipt."
- Reference late-fee rights explicitly: print a notice on every invoice reserving statutory interest and recovery fees under applicable commercial law.
- Send automated reminders: polite notices 3 days before due date, on the date, and 7 days after.
- Issue updated statements: for seriously overdue accounts, send a revised statement itemizing principal, accrued interest, and recovery fees.
Frequently Asked Questions (FAQs)
What is statutory late payment interest?
Statutory late payment interest is the legally mandated interest rate businesses can charge on overdue commercial invoices when no contractual rate is specified. Under EU and UK law, it is typically the central bank reference rate plus an 8% statutory margin.
Can I claim fixed recovery costs for late commercial payments?
Yes. Under the EU Late Payment Directive and the UK Late Payment of Commercial Debts Act, creditors can claim a fixed fee (minimum €40 in the EU; £40–£100 tiered in the UK) to cover administrative recovery costs.
From what date can I charge late payment interest?
Interest accrues from the day after the agreed invoice due date. If no due date was specified, statutory interest generally begins 30 days after the invoice date or the receipt of goods and services.
Do statutory late payment laws apply to business-to-consumer (B2C) sales?
No. Statutory commercial late payment laws (such as the EU Directive and UK Late Payment Act) apply strictly to Business-to-Business (B2B) and Business-to-Public-Sector transactions. Consumer debt interest is governed by consumer protection and credit agreements.
Can I charge contractual interest instead of statutory interest?
Yes. If your contract includes an explicit, reasonable late payment clause, contractual terms supersede statutory rules. However, penalty rates must be fair to remain enforceable in court.
What happens if an overdue invoice is partially paid?
A partial payment is first applied to outstanding recovery fees, then to accrued interest, and finally to the principal balance. Daily interest keeps accruing only on the remaining unpaid principal.
Can I waive late payment interest fees for important clients?
Yes. Exercising statutory late payment rights is optional. You retain full discretion to waive late fees or renegotiate payment schedules to preserve long-term business relationships.
Guidance only — not legal advice. Confirm rates, terms, and fee entitlements with counsel before enforcing.
Understanding EU Statutory Late Payment Interest
Commercial transactions within the European Union are governed by Directive 2011/7/EU on combating late payment in commercial transactions. When a B2B invoice becomes overdue, creditors possess a legal entitlement to charge statutory interest and administrative fees without sending a formal payment reminder.
1. Statutory Interest Rate Formula
The interest rate for commercial late payments is calculated as the ECB Reference Rate + 8 Percentage Points. Interest accrues daily starting the calendar day immediately following the payment due date.
2. Mandatory €40 Debt Recovery Fee
European law automatically grants suppliers a statutory minimum fixed sum of €40 (or equivalent local currency amount) for every late invoice to cover internal administrative debt collection costs.
Frequently Asked Questions
When can I start charging interest?
You can begin charging statutory interest starting the day after the agreed due date on your invoice. If no due date was specified, interest begins 30 days after invoice receipt.
Do I need to issue a reminder first?
No. Under EU Directive 2011/7/EU, interest and the €40 recovery fee apply automatically by operation of law.
Related Business & Tax Tools
When to Calculate Late Payment Interest (Month-End & Due Date Cycles)
Most B2B payment terms operate on Net-30 or Net-60 cycles, making the 10th to the 15th of the month peak windows when accountants reconcile overdue accounts receivable. Statutory interest accrues daily the moment a deadline passes.
💡 Pro Tip: You do not need to wait for a quarter-end to claim your €40 statutory recovery fee and ECB + 8% daily interest; it legally activates on day one of default.