Statutory interest is base rate plus 8%.
Only used if you chose your own rate above.
An estimate, not legal advice. Statutory interest applies to commercial debts in the UK. Check the current Bank of England base rate before relying on the figure, and confirm your contract terms.
Calculated entirely in your browser. Nothing you enter is sent anywhere.
How to use it
Enter the invoice
The amount and how many days past the due date it is.
Check the base rate
Statutory interest is the Bank of England base rate plus eight percent.
Add the compensation
It is automatic on late commercial payments, even if your contract never mentions it.
How the calculation works
Statutory interest on late commercial payments in the UK is the Bank of England base rate plus eight percent. The daily figure is the invoice amount times that annual rate, divided by 365, and the total is that multiplied by the days overdue.
Fixed compensation is separate and is set by invoice size: forty pounds under a thousand, seventy up to ten thousand, and a hundred at ten thousand and above. It is charged once per invoice, not per day.
You can use your own contract rate instead if you have one and it is higher. What you cannot do is charge nothing in the contract and then invent a rate afterwards.
What this calculator does not do
This is not legal advice. Statutory interest applies to business-to-business debts in the UK and does not apply to consumers.
It does not check the current base rate for you. Look it up before relying on the figure, because it changes.
It does not account for reasonable recovery costs beyond the fixed compensation, which you may also be able to claim in some circumstances.
Questions
What is statutory interest?
Base rate plus eight percent, which applies to late commercial payments in the UK by default when the contract is silent.
Do I have to mention it in the contract?
No. The entitlement is automatic for business-to-business debts. Mentioning it on the invoice makes it harder to argue with.
Can I charge it to a consumer?
No. Statutory late payment legislation covers business-to-business transactions only.
Should I actually charge it?
That is a commercial decision. Many freelancers calculate it, show it on the statement, and then waive it as a gesture once payment arrives.
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