Accountants Late Payment Interest (Daily) Calculator Examples
Worked examples showing daily late payment interest on overdue invoices at different balances, rates and overdue periods.
These examples show how an annual late payment interest rate translates into a daily charge, accrued interest and an estimated total amount due. Currency symbols are illustrative; use the relevant invoice currency in the calculator.
Small invoice overdue for two weeks
A £750 invoice is 14 days late at an annual rate of 6%.
Input Summary
Overdue invoice amount
£750.00
Annual interest rate
6%
Days late
14 days
Calculation Breakdown
- 1Daily rate6 / 100 / 3650.000164384
- 2Daily interest750 × 0.000164384£0.12329
- 3Accrued interest0.12329 × 14£1.73
- 4Total due750 + 1.73£751.73
Result Summary
Total due
£751.73
Accountants Late Payment Interest (Daily) Calculator
The estimated interest is £0.12 per day and £1.73 over 14 days.
Standard invoice overdue for one month
A £5,000 invoice is 30 days late at an annual rate of 8%.
Input Summary
Overdue invoice amount
£5,000.00
Annual interest rate
8%
Days late
30 days
Calculation Breakdown
- 1Daily rate8 / 100 / 3650.000219178
- 2Daily interest5000 × 0.000219178£1.09589
- 3Accrued interest1.09589 × 30£32.88
- 4Total due5000 + 32.88£5,032.88
Result Summary
Total due
£5,032.88
Accountants Late Payment Interest (Daily) Calculator
The estimated daily interest is £1.10 and the total accrued interest is £32.88.
Larger invoice overdue for a quarter
A £25,000 invoice is 90 days late at an annual rate of 10%.
Input Summary
Overdue invoice amount
£25,000.00
Annual interest rate
10%
Days late
90 days
Calculation Breakdown
- 1Daily rate10 / 100 / 3650.000273973
- 2Daily interest25000 × 0.000273973£6.84932
- 3Accrued interest6.84932 × 90£616.44
- 4Total due25000 + 616.44£25,616.44
Result Summary
Total due
£25,616.44
Accountants Late Payment Interest (Daily) Calculator
The estimate adds £6.85 per day, reaching £616.44 over 90 days.
Part-payment scenario calculated on the remaining balance
After a £4,000 part-payment, £6,000 remains unpaid for 45 days at 7.5% annually.
Input Summary
Remaining overdue balance
£6,000.00
Annual interest rate
7.5%
Days late on remaining balance
45 days
Calculation Breakdown
- 1Daily rate7.5 / 100 / 3650.000205479
- 2Daily interest6000 × 0.000205479£1.23288
- 3Accrued interest1.23288 × 45£55.48
- 4Total due6000 + 55.48£6,055.48
Result Summary
Total due
£6,055.48
Accountants Late Payment Interest (Daily) Calculator
Interest on the £6,000 remaining balance is estimated at £55.48 for 45 days.
How to Read Your Results
The daily interest figure shows the estimated additional charge for one more overdue day.
Total late payment interest is the estimated simple interest for the exact number of days entered.
Total amount due combines the original overdue balance and calculated interest only.
Use the unrounded calculation where records require more precision; display values are normally rounded to currency decimals.
Confirm the correct rate, start date and day-count method before relying on an estimate.
Assumptions & Important Notes
- All examples use a 365-day year and simple interest.
- The balance and annual rate remain unchanged within each illustrated period.
- Examples exclude fixed compensation, collection costs, taxes and other non-interest charges.
Related Examples
Frequently Asked Questions
Can I use the calculator for a part-paid invoice?
Yes, but use the remaining balance and calculate separate periods if the balance changed during the overdue period.
What happens if the invoice is 0 days late?
The calculated interest is zero because no overdue days are entered.
Can I use a different currency?
Yes. The formula works with any currency as long as the invoice amount and displayed result use the same currency.
Why do displayed totals sometimes differ by one cent or penny?
This can occur when daily interest is rounded for display instead of carrying more decimal places until the final total.
Ready to calculate your own result?
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