Sleet
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Late Payment Interest Calculator

Estimate interest owed on an overdue invoice

Free No signup GST ready
What this calculator does

Calculate the interest accrued on an overdue invoice using your contract rate or the MSME Act rate (3x RBI bank rate, compounded monthly).

Calculate interest as per
Rate and method agreed in your invoice or contract
Interest type

Good to know

  • MSMED Act, Sec 15–16: a buyer must pay a Micro or Small supplier within the agreed period, and never later than 45 days from acceptance of the goods or services.
  • Delay attracts interest at three times the RBI bank rate, compounded with monthly rests. It applies from the day after the due date.
  • Most B2B contracts set their own rate — if yours does, use "Contract rate". Under the Act, a contract rate cannot reduce what an MSME supplier is owed.
  • The supplier must hold an Udyam registration; for Medium enterprises the Act does not apply.

Results

Select both dates to see the calculation.

Estimate only. Monthly compounding is approximated on calendar months. Confirm the RBI bank rate in force and the terms of your contract before invoicing a customer for late payment.

How it works

How this tool works

Enter the invoice amount, invoice date, credit period and payment date. Choose a contract rate (simple or monthly compound) or the MSME Act method, and the overdue days, interest and total amount due are calculated for you.

Questions

Late Payment Interest Calculator: FAQs

Only if it is specified in your contract or invoice terms, or if your customer qualifies under the MSME Development Act, which mandates interest at 3x the RBI bank rate for delayed payments to registered MSMEs.

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Questions about the late payment interest calculator?

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