Your invoice is late.
Here's what you're owed.
Calculate the exact late payment interest on any overdue invoice. Covers statutory rates for the UK, EU, US, Australia, Singapore, and 20+ more countries — updated for 2026.
Legal late payment interest rates by country — updated for 2026. Statutory rates apply automatically to commercial (B2B) transactions; always check current central bank rates as these change frequently.
| Country | Annual rate (2026) | Basis / Legal source | Notes |
|---|---|---|---|
| United States | 18% typical | Contract / state lawContract | No federal statutory rate. IRS rate: 8%/yr. State usury laws vary. Must specify in contract. |
| United Kingdom | ~12.75% | Late Payment Act 1998Statutory | BoE base (4.75%) + 8%. + Fixed compensation £40–£100. Applies to all B2B without contract. |
| Germany | ~12.15% | BGB §288Statutory | ECB rate (3.15%) + 9% for commercial B2B. Consumer debts: ECB + 5%. |
| France | ~13.15% | Code de commerceStatutory | ECB + 10pp minimum for B2B. Also minimum 3× ECB rate. Fixed €40 recovery cost. |
| Netherlands | ~11.15% | EU Directive 2011/7/EUStatutory | ECB rate (3.15%) + 8%. Max payment term: 60 days B2B, 30 days public sector. |
| Sweden | ~10.25% | RäntelagenStatutory | Riksbank reference rate (2.25%) + 8%. Applies 30 days after invoice due date. |
| Denmark | ~10.75% | RentelovenStatutory | Danmarks Nationalbank rate + 8pp (approx.). Applies to all B2B commercial debts. |
| Norway | ~11.5% | ForsinkelsesrentelovenStatutory | Finance Ministry sets rate semi-annually. Typically Norges Bank rate + 8–9pp. |
| Switzerland | 5% | OR Art. 104Statutory | Fixed 5%/year. Simple statutory rate for all commercial obligations. |
| Australia | ~10% typical | Contract / state lawContract | No national statutory rate. RBA cash rate (~4.1%) + contractual. Varies by state. |
| Canada | ~9% typical | ContractContract | No federal statutory rate. BoC prime (~5%) + contractual. Must specify in contract. |
| New Zealand | ~10% typical | ContractContract | No statutory rate. Common law + contract. Specify in terms of trade. |
| Singapore | 8% | Late Payment Interest Act 2021Statutory | 8%/year simple interest from due date. Applies to qualifying B2B contracts. |
| Japan | 6% | Commercial CodeStatutory | 6%/year for commercial transactions. Civil Code default rate: 3% (reduced 2020). |
| South Korea | 12% | Commercial ActStatutory | 12%/year for commercial transactions. 5% for civil (non-commercial) debts. |
| India | ~18% | MSMED Act / ContractStatutory | MSMED Act: 3× RBI bank rate for delays to MSMEs. Typical commercial: 18–24%/yr. |
| UAE | 12% | Federal Commercial CodeStatutory | 12%/year for commercial debts. Parties may agree higher rate contractually. |
| Brazil | 12% + SELIC | Civil Code Art. 406Statutory | 1%/month (12%/yr) + SELIC inflation adjustment. SELIC rate varies ~10–14%/yr. |
| Poland | ~10.75% | Late Payment Act 2019Statutory | NBP reference rate (0.75%) + 10pp = ~10.75%/yr. Fixed €40 recovery cost. |
| South Africa | ~11.25% | Prescribed Rate of Interest ActStatutory | SARB repo rate (7.75%) + 3.5% = ~11.25%/yr. Set by Minister of Justice. |
| Israel | ~8–10% | Contract / BoI rateContract | Based on Bank of Israel rate. Specify in contract; typically 8–10%/yr in practice. |
| Turkey | ~35–45% | Commercial CodeStatutory | Tracks TCMB policy rate closely. Very high due to inflation environment. Verify current rate. |
Rates are approximate for 2026 and subject to change with central bank decisions. ECB rate: ~3.15%, BoE: ~4.75%, Riksbank: ~2.25%. Always verify current rates before issuing a formal claim. "Statutory" = rate applies automatically by law; "Contract" = must be specified in your terms.
How late payment interest works
When a client pays late, you're effectively giving them an interest-free loan for the overdue period. Late payment interest compensates you for that. In many countries, you're entitled to it automatically by law — even if your contract doesn't mention it.
Simple vs compound interest
Simple interest — the most common for short overdue periods: multiply the invoice amount by the annual rate by the fraction of the year overdue. On a $3,000 invoice at 18%/yr for 45 days: $3,000 × 0.18 × (45÷365) = $66.58.
Compound interest — interest on unpaid interest. Used less frequently for invoices but grows faster over longer periods. For invoices unpaid for 6+ months, compounding makes a meaningful difference.
UK: Fixed debt recovery costs on top of interest
In addition to interest, UK businesses can claim a fixed sum to cover debt recovery costs. This applies automatically to all qualifying B2B transactions — no contract clause needed.
| Invoice under £1,000 | £40 |
| Invoice £1,000 to £9,999.99 | £70 |
| Invoice £10,000 or more | £100 |
If your actual recovery costs exceed the fixed sum, you can claim the difference under the Debt (Formerly Revenue and Finance) Act provisions. Keep records of time spent chasing the debt.
Should you charge late payment fees in practice?
Legally, yes — in most jurisdictions you're entitled to them. Practically, use judgment. For a long-term client who's a few days late, a reminder usually suffices. For persistently late payers or clients who've gone silent, invoicing the interest demonstrates you take your terms seriously and often accelerates payment.