How is late payment interest calculated?

In the UK it is the Bank of England base rate plus 8 percent as simple interest for the days overdue, plus a fixed fee per invoice of 40, 70 or 100 pounds by debt size. In the EU it is the European Central Bank reference rate plus 8 percent, plus a 40 euro recovery fee. In the US it is typically around 1.5 percent per month if agreed in writing. The calculator applies the correct rule for the country you choose.

Which countries does this cover?

The calculator covers the United Kingdom, Ireland, Germany, France and the wider EU, the United States, the United Arab Emirates, Australia and Canada, plus an international mode where you enter your own rate. Each country uses its own statutory or contractual rule.

Late Payment Interest Calculator

Why this money is yours

Late payment already carries a price. Almost nobody charges it.

Most businesses never claim the interest or the fixed fee the law gives them, so a late payer has no reason to hurry. Recoup flips that. It calculates exactly what they owe, drafts a firm, correct, escalating demand, and gives the late payer a clear reason to settle now, not later, with the right rule for your country. The interest is the lever; getting you paid is the point.

Pick your country, see the number

The calculator applies the right statutory or contractual rule for where you trade, so the estimate is grounded in real law, not a guess.

We build the compliant claim

A dated interest ledger and a correctly-worded demand, the paper trail that gets late payers to pay, without torching the relationship.

You keep the money

It is interest and compensation you were entitled to anyway. We are the calculator and the paperwork, not a debt collector taking a cut of your principal.

🇬🇧 United Kingdom🇮🇪 Ireland🇩🇪 Germany🇫🇷 France🇪🇺 EU🇺🇸 United States🇦🇪 UAE🇦🇺 Australia🇨🇦 Canada🌍 International

When it's live

From one invoice to your whole ledger, on autopilot.

Connect Xero or QuickBooks and Recoup watches every invoice. The moment one goes overdue it calculates the interest for the right jurisdiction, drafts the claim, and starts the polite, escalating chase. You approve every step; it does the follow-up for you.

Done-for-you claim

£39 one-time

A ready-to-send statutory demand letter for your invoice
A dated interest ledger you can attach
Delivered to your inbox, ready to send today

Get the claim pack →

Founding

Recoup Pro

£99/mo + 10% recovered

Xero / QuickBooks sync, every invoice watched
Auto-drafted demands + interest ledger for your country
Polite, escalating auto-chase sequences
We only take a cut of interest recovered, never principal

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Accountants & bookkeepers, run it for every client
White-label, revenue share
Multi-entity, multi-country dashboard

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Straight answers

The questions every business asks first.

Am I really allowed to charge this?

It depends on your country. In the UK and across the EU there is an automatic statutory right to interest and a fixed recovery fee on overdue B2B invoices, whether or not your contract mentions it. In the US, Australia and Canada there is generally no blanket statutory rate, so you charge what your written terms allow, within local limits. In the UAE, interest runs from the due date and is capped at 12% a year if no rate is agreed. Pick your country above and the calculator applies the right rule. For a material or disputed sum, check with a local professional.

How is the interest worked out?

In the UK it is the Bank of England base rate plus 8% as simple interest for the days overdue, plus a fixed fee per invoice (£40 / £70 / £100 by size). In the EU it is the ECB reference rate plus 8%, plus a €40 recovery fee. In the US and Canada it is typically about 1.5% per month if agreed in writing. In Australia it is what your contract allows (a ~10% benchmark is common). In the UAE it runs from the due date, capped at 12% a year.

Won't chasing interest damage the client relationship?

That is exactly why most businesses do not claim, and why they leave the money on the table. Recoup's demands are worded to be firm and correct, not aggressive, and you approve everything before it sends. The paper trail is what gets you paid; the tone keeps the relationship intact.

Is Recoup a debt collection agency?

No. Recoup is software that helps you claim what you are entitled to. You stay in control: it calculates the interest and any fee, drafts the documents, and every message sends only on your approval, from you, to your customer. We do not take over the debt or act as a collector. On the paid plan our fee is success-aligned, a share of the extra interest we help you recover, never a cut of your principal.

What if the invoice has already been paid, just late?

In statutory countries (UK, EU) you can still claim the interest and fixed compensation for the period it was overdue. Elsewhere it depends on your terms. Switch the calculator to "Paid late" and enter the date it landed.

Get Recoup before everyone else.

We're onboarding a first group of businesses and accountants across the UK, EU, US and beyond. Early members get founding pricing locked for life and help shape what we build. Drop your email.

By joining you agree we can email you about Recoup. No spam, one email when it opens plus your founding-member invite, unsubscribe anytime.

Not legal or financial advice. Recoup provides a calculation tool and document templates. Figures are estimates for guidance and use the rule for the country you select: the UK Late Payment of Commercial Debts (Interest) Act 1998; the EU Late Payment Directive 2011/7/EU and national transpositions; UAE Federal Decree-Law No. 50/2022; and, for the US, Australia and Canada, typical contractual and court rates because there is no blanket statutory B2B rate. Reference rates (Bank of England base rate, ECB reference rate) change over time and are fixed to a reference date; your contract terms, agreed payment terms and specific circumstances may change what you can claim. For a specific dispute, consult a qualified professional in your jurisdiction. Recoup is not a debt collection agency and does not provide regulated debt collection services.

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