Late Payment Invoice Calculator Tool
Free online calculator to calculate the additional fees you can add on to a late / overdue invoice.
Article By: Tom Ayre | Last Update: October 2021
Late payments / invoices are extremely frustrating. Cash flow is a big part of business and essential to make sure your business functions correctly. In this article we have made a late payment invoice calculator made using guidance from the UK Government’s guidance.
Using our free calculator tool you will be able to:
- Input the debt you are owed.
- When the debt was overdue.
- How much you are now owed.
Let’s get to it!
UK Government Guide On Late Commercial Payments
You can also charge a business a fixed sum for the cost of recovering a late commercial payment on top of claiming interest from it. The amount you’re allowed to charge depends on the amount of debt. You can only charge the business once for each payment.
Please check the following link to ensure the charges are up to date (latest check 06/05/2021):
If your business were owed £1,000 and the Bank of England base rate were 0.5%:
– The annual statutory interest on this would be £85 (1,000 x 0.085 = £85)
– Divide £85 by 365 to get the daily interest: 23p a day (85 / 365 = 0.23)
– After 50 days this would be £11.50 (50 x 0.23 = 11.50)
– As the debt is over £1000 you can then add on £70 recovery cost.
Total owed (£11.50 + £70) = £81.50
Late Payment Calculator Tool
Questions or Queries?
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