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Unpaid Wages & Invoice Interest Calculator

Calculate interest owed on overdue invoices or unpaid wages. Generates a snippet for formal demand letters. Supports custom daily/annual rates.

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About

Late payments cripple cash flow for freelancers and contractors. In many jurisdictions (such as under the UK's Late Payment of Commercial Debts Act or various US state labor laws), you are statutorily entitled to charge interest on overdue amounts. Creditors often ignore this until it is formally itemized.

This tool empowers you to quantify the cost of the delay. It calculates daily interest accumulation from the due date to the present, converting a "soft" annoyance into a hard financial liability for the debtor. It is essential for constructing a professional Demand Letter.

freelance legal debt interest invoice

Formulas

Most legal jurisdictions use Simple Interest for statutory debt:

Interest = P × r × d365

Reference Data

VariableSymbolStandard Value
Principal DebtPInvoice Amount
Annual Rater8% (Statutory) or Contract Rate
Days OverduedCurrent Date − Due Date

Frequently Asked Questions

Check your contract first. If silent, check local laws. In the US, it varies by state (often 6-10%). In the UK, it is Bank of England base rate + 8% for B2B.
Usually, no. Unless your contract explicitly states "compound interest", courts generally only award simple interest on debts.