Late payment interest calculator
Work out the statutory interest you can charge on an overdue invoice under EU Directive 2011/7/EU — plus country-specific rules.
Base rates change quarterly — verify with your national bank before using in legal correspondence.
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How late-payment interest works in the EU
Under EU Directive 2011/7/EU on combating late payment in commercial transactions, businesses have an automatic right to interest on B2B invoices that are paid late — you don't need a clause in your contract, and you don't need to warn the client first.
The statutory rate is the European Central Bank's main refinancing rate + at least 8 percentage points. Member states can set higher margins (Germany uses 9pp for B2B). You are also entitled to a €40 flat compensation for recovery costs.
The formula
Interest = Amount × (Base + Margin)/100 × Days late / 365
When it starts running
The day after the payment due date. If the invoice doesn't specify a due date, the default is 30 days after the client received the invoice or the goods, whichever is later.
Should you actually charge it?
That's a business judgment. Most freelancers cite the entitlement on their invoice as a deterrent ("Interest at ECB base + 8pp applies to overdue amounts under Directive 2011/7/EU") without actually invoicing the interest — because the goal is to get paid, not to escalate. Reserve the actual bill for repeat offenders and formal collections.
Frequently asked
Can I always charge interest on late invoices?
For B2B invoices in the EU, yes — Directive 2011/7 gives you the automatic right, no contract needed. For B2C invoices, you generally need it in your terms first.
What is the €40 recovery fee?
Directive 2011/7 gives creditors an automatic right to a €40 flat fee per late invoice as compensation for administrative recovery costs — on top of the interest itself.
Does interest compound?
No, statutory interest is simple interest per year, calculated pro-rata by days late.
What if my invoice has no due date?
The default under the Directive is 30 days from receipt of the invoice (or of the goods/services, whichever is later). Interest starts running on day 31.
Can I waive the right to interest?
Only through explicit contract terms, and even then not to an extent that would be "grossly unfair." Most standard terms cannot override the Directive.
This calculator provides an estimate for informational purposes. Statutory rates change quarterly — always confirm the current base rate with the ECB or your national central bank, and consult a lawyer for formal collections.