Late Payment Interest

When a customer pays late, this calculator works out the interest you can claim — at the rate you agreed or, for registered micro and small enterprises, the MSMED Act rate — and writes a reminder you can send.

Where to find it: Other Tools ▾ → Late Payment Interest

1. The unpaid bill

Enter the Customer, Invoice number, Amount outstanding, any Part payment received, the Invoice date and Credit days (or the Due date directly), and the date it was paid or the date to work it out as on.

2. How interest is charged

• Rate agreed with the customer: enter the rate (% a year or % a month) and choose Simple interest or Compounded monthly.
• MSMED Act: enter the current RBI bank rate. Interest is three times that rate, compounded monthly.
• Grace days after the due date, and whether a year has 365 or 360 days.

3. The result

You see the interest owed, the interest per day, the total now due, the due date and the days overdue, with a Month by month break-up. Reminder you can send is a ready message — click Copy reminder and paste it into WhatsApp or email.