Late Payment Fee Calculator

Free Late Payment Fee Calculator (UK, EU, US, AU, CA)

Client paying late? You're entitled to charge interest. In some countries, you can also charge recovery fees. Use the calculator above to figure out exactly how much you can claim.

Late Payment Interest Rates by Country (May 2026)

These are STATUTORY rates that apply if your contract doesn't specify. You can usually charge MORE if your contract states it (within reason).

How to Calculate Late Payment Interest

Standard formula:

Interest = Invoice amount × Annual rate × (Days overdue ÷ 365)

Example: £1,000 invoice, 12% statutory rate, 45 days late.

Interest = £1,000 × 0.12 × (45 ÷ 365) = £14.79

Plus £40 recovery fee in UK = £54.79 total late fee.

Recovery Fees (Fixed Costs You Can Claim)

UK: Late Payment of Commercial Debts Act allows fixed recovery costs based on invoice value:

• Up to £999.99: £40
• £1,000 to £9,999.99: £70
• £10,000+: £100

EU: Late Payment Directive 2011/7/EU allows minimum €40 recovery cost. Some countries (Germany, Belgium) allow more.

US, Canada, Australia: No statutory recovery fees. You can include them in your contract terms (e.g., "$25 admin fee for late payments") but enforcement is harder without statute.

How to Actually Charge Late Fees

Step 1: Make sure your invoice payment terms are crystal clear. "Net 30" with the actual due date spelled out.

Step 2: Include late fee terms on the invoice. Something like: "Overdue invoices are subject to interest at [X]% APR per the [relevant law]. A recovery cost of [£40] may also apply."

Step 3: When the invoice goes overdue, send a friendly reminder first (day 1 to 7).

Step 4: After 14 to 21 days overdue, send a formal notice with the calculated late fee added to a new invoice or credit note.

Step 5: After 30+ days, escalate via small claims, debt collector, or legal action depending on amount.

Full playbook: how to handle late payments.

Sample Late Fee Invoice Wording

Add to your invoice terms section:

UK version: "Payment due within 30 days. Overdue accounts are subject to interest at the Bank of England base rate plus 8% (currently approximately 12% per annum) per the Late Payment of Commercial Debts (Interest) Act 1998. A recovery fee of £40 to £100 may also apply depending on invoice amount."

EU version: "Payment due within 30 days. Overdue accounts are subject to interest at the European Central Bank reference rate plus 8% per annum, plus minimum €40 recovery costs, in accordance with EU Directive 2011/7/EU."

US version: "Payment due within 30 days. Overdue accounts incur interest at [X]% per annum from the due date until paid in full."

Australia version: "Payment due within 14 days. Overdue accounts are subject to interest at the RBA cash rate plus 7% per annum from the due date."

Should You Actually Charge Late Fees?

Mixed feelings on this. Late fees:

Pro: Compensate you for the cost of being unpaid. Discourage repeat late payment. Send a clear signal that you're a professional, not a charity.

Con: Can damage relationships with otherwise good clients. Some clients will refuse to pay any late fee on principle. Can be hard to enforce without going legal.

Personal take: Charge interest on serial late payers. Skip it for one-off late payments from good clients (just remind firmly). Add it to contracts so the threat exists, even if you don't always enforce.

Resources

Use the free invoice generator with proper payment terms to set yourself up for fewer late payments. Read how to handle late payments and 10 ways to get paid faster.