Late payment contractual interest calculator
Contractual Interest Calculator
Please follow the instructions below.
Please input the date when the payment became overdue. If you have agreed a credit period with your debtor, then the date you need to enter here will be the last day of that credit period. Otherwise, the due date is either 30 days after the delivery of the goods or services or 30 days after the date of invoicing, whichever is later.
Please check the 'Is Compound Interest Chargeable?' field below if your contract with your debtor stipulated that compound interest would be charged on late payments.
Next, in the 'Interest Rate' field, enter the percentage interest rate as stipulated in your contract with your debtor.
Finally, in the 'Invoice Value' field, enter the invoice value, inclusive of VAT and click the 'Calculate' button.